Posted on 07/25/2008 7:39:47 PM PDT by rabscuttle385
By John Poirier
WASHINGTON (Reuters) - U.S. regulators took over two banks on Friday and sold them to Mutual of Omaha Bank, the sixth and seventh bank failures this year as financial institutions struggle with a housing bust and credit crunch.
ADVERTISEMENT Two weeks after the Federal Deposit Insurance Corp seized IndyMac Bancorp Inc (Other OTC:IDMC.PK - News), the Office of the Comptroller of the Currency said it closed First National Bank of Nevada and First Heritage Bank NA of California.
First National had total assets of $3.4 billion and $3 billion in deposits while First Heritage had assets of $254 million and $233 million in deposits, regulators said.
The FDIC said the cost of the transactions to its insurance reserve is estimated to be $862 million, adding that the two failed banks represent just 0.3 percent of the $13.4 trillion in total industry assets at about 8,500 FDIC-insured institutions.
(Excerpt) Read more at biz.yahoo.com ...
Unsecured creditors include other financial institutions. Banks (hell, even the biggest credit unions may participate here) lend reserves to each other overnight so that they meet requirements. Inter-bank lending to WaMu has slowed dramatically. In other words, the other banks don't trust WaMu.
WaMu's own unsecured creditors (the people WaMu owes money to, aside from insured depositors) are the ones pulling money, not folks who owe WaMu money.
You mentioned that she's on disability. Disability is an exception to the 59 1/2 year old age rule with Roth IRAs. She should be able to make distributions now with no penalty. However, amounts distributed that have been in the Roth IRA less than five years may be subject to ordinary income tax.
Helpful links: click here and here. The second one looks a tad bit stale, but I didn't see any major changes.
Of course, I'm not a professional, so I may be wrong or have forgotten something, so make sure you consult your CPA and tax preparer before taking any actions, as distributions from IRAs are generally irreversible.
Derivatives are rad because they allow for the management of risk, which is just as important as plain ol' capital. The problem is that they rely on pretty nasty mathematics and computer modeling and simulation techniques...and when combined with extreme leverage, it's like playing with liquid nitrogen.
Dodd...he has his hands in the pie. They all do.
Who the hell cares about leveraged derivitives anymore???
Thanks,
That gives her something to consider this weekend!
I wrapped up a banking course in early June. My prof was an old-timer in retirement (and one of Milton Friedman's advisees at the University of Chicago way back when) who still teaches during the summer for fun and for profit. We used Cecchetti's money and banking textbook (link), which is fairly good.
Plus I have about twenty-something months experience as a teller and technology intern at two different financial institutions, including a very large credit union. And, my dad is a portfolio manager (go figure).
People would actualy carry their money in wheel barrows. You would pay a few million for a loaf of bread.
Let see, the third seal, a rider on a (oil) black horse that has a merchants scales in his hands crying a days wages for a loaf of bread...
Revelation 6
The only ‘relevant’ stock prices are future stock prices, not past stock prices...one man’s trash is another man’s treasure! Full disclosure...I don’t (yet) own any WM stock, never have owned WM stock, and have no CURRENT plans to buy WM stock...you’re short, right?
Actually that's the point I was trying to make...your post, of course, makes it better, thanks. My MAJOR concern is that a little 4 analyst outfit called Gimme Credit is the outfit that started the rumor that 'unsecured creditors are pulling money out' at exactly the same time that FHLB, et al became huge 'unsecured creditors'. My gut feel tells me that Gimme Credit is either related to the Hollywood (film) Company of the same name, or just another Short 'consultant'/basher/rumor mill available for hire to 'help' the naked short 'investors'./rant
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.