Posted on 08/19/2008 10:10:59 AM PDT by Santa Fe_Conservative
The global financial crisis is set to get worse, with a large US bank likely to collapse in the next few months, a former IMF chief economist has warned.
Kenneth Rogoff's comments came as shares in Fannie Mae and Freddie Mac sank on a report that the home lenders would, in effect, be nationalised.
Despite hopes that the US economy had turned the corner, Mr Rogoff claimed it was "not out of the woods".
"I would even go further to say 'the worst is to come'," he said.
"We're not just going to see mid-sized banks go under in the next few months," said Mr Rogoff, who held the IMF role between 2001 and 2004.
"We're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks."
Speaking at a conference in Singapore, Mr Rogoff, now an economics professor at Harvard, forecast that Fannie Mae and Freddie Mac would "probably" not exist in their present form in a few years.
(Excerpt) Read more at news.bbc.co.uk ...
It aint going to be Chase. They are the only money center bank to emerge from the subprime crisis unscathed. Jaime Dimon has been the only bank CEO, IMHO, that has actually done his job at risk management.
Wamu is iffy, Wachovia is likely to survive with a much lower stock price, but Lehman is going down.
You should close all of your accounts at Bank of America. I just did. While the may have nice people in some of their local branches, the organization is rotten at the top— more interest in adversely influencing public policy than in serving their customers. I wouldn’t be surprised to see the Chi-Coms buy it. Although the government of Mexico should.
What are the numbers to the right of those banks?
“you guys want to see a big bank fail?”
No, but have you seen the numbers on some of these banks? I think WaMu is dead man walking.
BANCO DE AMERIKA - Please!!
I agree with you.
If Chase goes down, then the entire worldwide financial system will have already collapsed by then.
My pick for bank that fails first is Regions. Ticker RF.
You made me go back and look. ;)
Those are the assets as of Dec.31, 2005.
I imagine that has changed a lot recently.
I’ll try to find up-to-date figures.
I hope not. I just got a great credit card deal from them. "Let us give you money for a while. If you return the same amount by January 2010 we'll be happy." Lending money at 0% for a year and a half? What could go wrong with that business model?
Here is the up-to-date (May) information:
(BTW, the assets are stated in MILLIONS of dollars)
United States’ Largest Banks
(in millions of U.S. dollars)
Rank Name (city, state) Consolidated
assets
1. Citigroup (New York, N.Y.) $2,199,848
2. Bank of America Corp. (Charlotte, N.C.) 1,743,478
3. J. P. Morgan Chase & Company (Columbus, Ohio) 1,642,862
4. Wachovia Corp. (Charlotte, N.C.) 808,575
5. Taunus Corp. (New York, N.Y.) 750,323
6. Wells Fargo & Company (San Fransisco, Calif.) 595,221
7. HSBC North America Inc. (Prospect Heights, Ill.) 493,010
8. U.S. Bancorp (Minneapolis, Minn.) 241,781
9. Bank of the New York Mellon Corp. (New York, N.Y.) 205,151
10. Suntrust, Inc. (Atlanta, Ga.) 178,986
11. Citizens Financial Group, Inc. (Providence, R.I.) 161,759
12. National City Bank (Cleveland, Ohio) 155,046
13. State Street Corp. (Boston, MA) 154,478
14. Capital One Financial Corp. (McLean, Va.) 150,608
15. Regions Financial Corp. (Birmingham, Ala.) 144,251
16. PNC Financial Services Group, Inc. (Pittsburg, Pa.) 140,026
17. BB&T Corp. (Winston-Salem, N.C.) $136,417
18. TD Bank North, INC. (Portland, Maine) 118,171
19. Fifth Third Bankcorp (Cincinatti, Ohio) 111,396
20. Keycorp (Cleveland, Ohio) 101,596
21. Northern Trust Corp. (Chicago, Ill.) 77,480
22. Bancwest Corp. (Honolulu, Hawaii) 74,808
23. Harris Financial Corp. (Wilmington, Del.) 69,172
24. Comerica Incorporated (Dallas, Tex.) 67,167
25. M&T Bank Corp. (Buffalo, N.Y.) 66,085
26. Marshall & Ilsley Corp. (Milwaukee, Wis.) 63,432
27. BBVA USA Bancshares, Inc. (The Woodlands, Tex.) 59,953
28. Unionbancal Corporation (San Fransisco, Calif.) 57,933
29. Huntington Bancshares, Inc. (Columbus, Ohio) 55,985
30. Zions Bancorporation (Salt Lake City, Utah) 53,597
NOTE: As of May 30, 2008.
Source: Federal Reserve System, National Information Center.
Information Please® Database, © 2007 Pearson Education, Inc. All rights reserved.
Wachovia is in the running, to be sure, but I think I’d be looking at HSBC first. They have a far larger credit risk based on their derivative and swap holdings.
I don’t have to worry, my bank is a small regional bank and most of my $$ is in a Credit Union.
That sorta looks like a scam to me.
Thanks! Great links. This home is in Sagamore Hills. $250,000 easy. A minority woman from Cleveland moved in, sort of. No furniture. Abandoned the home and mortgage two weeks later. SCAM!
“You can’t trust anyone in the investment business anymore because they ALWAYS have a finger in the pie.”
Ummm.....can i trust you??????? (giggling)
Scam, I get the same type of email from other banks..
Yep. My money is on Wachovia. Their disasterously timed acquisitions of Golden West Financial for 25 billion in 2006 and A.G. Edwards for 6.8 billion in 2007 left them massively under capitalized to handle the mortgage meltdown.
They are in big trouble.
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.