1/3 of Banks Will Disappear Next Year

CNBC ^ | 12/24/08

[TigerLikesRooster]

Video link: Many banks don't have enough money to survive in 2009, but mergers will keep their brands alive, said Ralph Silva of TowerGroup.

[TigerLikesRooster]

Ping!

[dennisw]

Citi and JP will be bailed out and maybe liquidated according to this guy. Too many CDS on their books. Great analysis of banking sector

Financials: Risk & Reward
Some extraordinary opportunities, with Chris Whalen, Institutional Risk Analytics managing director

http://www.cnbc.com/id/15840232?video=975734444&play=1

[Vet_6780]

JP Morgan IS the government. Even with $91 trillion of derivatives exposure they will be kept alive as the primary conduit for US treasuries.

[Raycpa]

some think the government is JP morgan

[Jimmy Valentine]

You will see small to mid-sized banks disappear. The Feds over the last twenty years have reduced the number of banks to about 9,000. They would be happy with less than 6,000.

Survivors will be smaller community banks and mega-banks; the rest won't be able to keep up with technology.

[Brilliant]

Seems unlikely to me.

[Glenn]

These guys have convinced themselves that the world cannot do without them. That they ARE capitalism. Dangerous people.

[oh8eleven]

1/3 of Banks Will Disappear Next Year
To be replaced by drug stores on every street corner in America.

[Terry Mross]

My wife is convinced “someone” is trying to get rid of all the wealthy and powerful in the world. Sounds like Marxism.

[mountainlion]

Sounds like the liberals are warning their friends to watch for the meltdown. Stay away form institutions that are invested in Derivatives. I think they are next. Lots of high paid misinformation out there.

[org.whodat]

Good now, what we need is some aggressive anti trust actions to bust up the larger ones. Too big to fail has to die!!!

[AndyJackson]

“someone” is trying to get rid of all the wealthy and powerful in the world.

Many of the wealthy and powerful are idiots who lead our economy into hell and are doing a perfectly good job of getting rid of themselves.

[AndyJackson]

Survivors will be smaller community banks and mega-banks; the rest won't be able to keep up with technology.

This is wrong. While technology can reduce the costs of transaction, technology did very little to keep companies like Lehman from making very bad transactions.

[mysterio]

We nationalized them. Pass a law that says they aren’t allowed to fail. Or that their shares can only increase in value. Or let them print their own fiat currency like Ben Mugabe does.

[SoftballMominVA]

Directive 10-289

Check

[mysterio]

My wife is convinced “someone” is trying to get rid of all the wealthy and powerful in the world. Sounds like Marxism.

Everything is simply a consolidation of power among fewer and fewer oligarchs. Right now, it's the US government consolidating power. Next will be a world government consolidating power. And nothing fuels power consolidation better than a depression / currency collapse.

Don't get me wrong, there aren't five old men sitting around a table somewhere in Europe plotting the whole thing. There are tens of thousands involved, and not toward some overtly nefarious goal. But they are consolidating power nonetheless.

[VOA]

bump

[Jimmy Valentine]

Disagree. The level of accounting requirements, product management etc. demands state of the art computing programs.

There are very large banks out there whose investment in capable back room operations has lagged. I could name some that still use DOS programs as their core operating systems. For them to upgrade would cost them millions of dollars which they do not have to invest.

[GOPJ]

1/3 of Banks Will Disappear Next Year

Remember when there was a gas station on every corner? Then the shakeout. Higher prices, less service. Banks will be the same...