Current Status of Nation’s Largest Banks
For the reasons we cited in our white paper, “Dangerous Unintended Consequences” and our recent press conference, six of the nation’s largest banks are currently at risk of failure, including JPMorgan Chase, Goldman Sachs, Citibank, Wells Fargo, Sun Trust Bank, HSBC Bank USA. This is their current status even without assuming a worst-case future scenario.
At the same time, there are strong banks in the U.S. that could play a constructive role in a future recovery provided that precious capital, whether private or public, is not diverted to poorly managed, endangered institutions.
Conclusion: Unless the stress tests openly recognize the true nature of the challenges faced by U.S. banks, they will merely perpetuate their problems. Rather than bolstering confidence, they risk shattering trust.
Timothy Geithner, get out of the way! It looks to me like our Treasury secretary, a few months into the job, is trying to usurp Hank Paulson's status as the worst Treasury Secretary in history.
Treasury Secretary Geithner isn't a newcomer to this financial crisis. As chairman of the New York Fed, he was intricately involved in the last administration's attempts to quell the credit markets. Geithner was supposedly going to hit the ground running, but instead he took an inordinate amount of time to come up with a pointlessly complicated plan to remove toxic assets from bank balance sheets.
The banks don't need to get rid of these assets, and they're not all actually toxic. All the banks need is time and regulators who will let them realistically price their assets at around 60 cents on the dollar. Recent revisions to mark-to-market rules were a step in the right direction, but they weren't sweeping enough. Now, Geithner wants to undermine them in favor of his own plan.
Geithner's plan will grant favored institutions access to taxpayer dollars so they can profit massively by underpaying for assets with free leverage. If you're not one of them, the whole plan stinks. No wonder Geithner has to keep going back to the drawing boards. It's early in Mr. Geithner's term, but it's not too early to show him the door. At least we can hope for someone better.
It is clear to me that The Resident is working for the banks and he is a Fascist. Since the buck is supposed to stop with him he should also resign for appointing thieves and liars and for being one himself. They are covering up the fact that some banks are insolvent and pushing the losses off on us the taypayer! This will not stay covered and in the end the harm that is being done to the citizens of this country is reprehensible all so they can continue the game and keep their friends rich at our expense. These are not Pennies from Heaven this is Trillions at our expense. Time for perp walks? Watch the video below I certainly think so.
I'm worried about the overreaction — people selling every bank short and pulling out all their deposits and hiding their money in the mattress," said Scott Talbott, a lobbyist with the Financial Services Roundtable, which represents the biggest financial firms.
Scripture says, “How is the faithful city become an harlot! It was full of judgment; righteousness lodged in it; but now murderers. Thy silver is become dross, thy wine mixed with water; thy princes are rebellious and companions of thieves; every one loveth gifts and followeth after rewards…: (Isaiah 1:21-23).
Folks, we need to pray that corruption at every level be exposed in our country and the criminals prosecuted and thrown in jail. Let freedom ring!
Lastly from The Market Ticker an interesting article..
I can only add one thing - he forgot to add the 535 criminals in DC plus The Federal Reserve Board to the list.