Nearly 100 bailed-out banks may collapse all the same: analysis

[irishspirit]

The $700-billion bank bailout, launched in the final months of the Bush administration, was meant to save US financial institutions from a systemic collapse. But an analysis of banks' earnings statements concludes that nearly 100 bailed-out banks are at risk of collapsing all the same.

Despite receiving a total of $4.2 billion in bailout cash, 98 US banks are at risk of failing, the Wall Street Journal reports.

The banks are suffering from “eroding capital levels, a pileup of bad loans and warnings from regulators,” the Journal reports, and the nature of the problem indicates that these banks were in trouble before the 2008 crisis hit -- a sign that the US's regulatory structure for banks may have been insufficient for years or decades before the collapse

http://www.rawstory.com/rs/2010/12/100-bailed-out-banks-may-collapse/

And people will be shocked by this for what reason? As if we didn't know that this would happen.

[Anchor]

If GFC 1 didnt get you GFC 2 probably will.

[Elandiel BernElve]

Prospects ? Anyone ?

[steve_a]

Hi Irishspirit,

A couple of years ago I used to like to chat with an old Avalonian, peaceandlove. She and I liked to scout out financial information from the banking sector. The article you posted is only the tip of the iceberg! There are far more institutions that are in high or moderate risk of collapsing, most waiting for the inevitable to happen: http://bankimplode.com/list/troubledbanks.htm

Apparently not even the FDIC is wanting to publish this list for fear of frightening the bank customers away!

If I was an American I would check out the list carefully to see if my bank was included in the mess and change it quickly. I don't see any reason to keep money in a bank in the US as the risk is far higher than the interest rates the banks are offering (close to 0%).

C'est la vie.

[Lost Soul]

My guess is that the end result is that the Federal Reserve will buy up these toxic assets and own everything. Whee! A return to the dark ages where less than 5% owned anything and the rest of us (95%) are serfs/peasants/tenant farmers/worker units.

BTW, the FDIC is already bankrupt and is borrowing against next year's fees to pay off this year's failures.

[sygh]

Lost Soul,

President Obama was warned we would be going into another dark age. That was a couple of weeks back. At the time, I thought this was a bantoring political comment, like a negative reference to the results of the November elections of 2010.

Halliburton and Dick Cheney, the Ex-Vice President, along with a bunch of other top officials flee to Dubai. Bush has 100,000 acres in Paraguay. Neither of those countries has extradition agreements with the US. People like Klaus Barbie, Josef Mengele, and Adolf Eichmann, holed up in Paraguay. :sad: Until today, I had no idea George Soros bought 67 mill. worth of Halliburton stock back at the end of 2006. Today I found an article that stated Halliburton pled guilty to a chain of briberies back in the 1990s, and has paid a $250,000,000 dollar fine in Nigeria to settle a court action taken against Dick Cheney and Halliburton. $250 mill?

http://edition.cnn.com/2010/WORLD/africa/12/14/nigeria.cheney.halliburton/

None of this is good. I've heard threats coming out of France, referring to the way the French have been known to take care of things like this.