Is commercial paper affected by this? Say T.Rowe Price Prime Reserve money market fund? ...
I know this isn't an investing blog, but as readers like me try to put information to use, I wonder -- what is the effect of bank failures on things I might own?
They're my mortgage servicer. I was hoping to pay off my mortgage in December. Before they go bankrupt. Oh well. What are the chances they lose my mortgage records?
Beating this one to a pulp lately, but my wife and I had a combined 20 years with WAMU, and after they put a near 3 week hold on multiple checks - one $416!, we have had enough and have completed the switch to a "New Resource" bank this weekend, mortgage coming out of the new one as of this A.M. No more letters of non-explanation as to why they returned a 7.4 K check to our plumber TWICE, with a balance of 30K!! FU WAMU, and good riddance!
In response to market rumors, National City Corporation today issued the following statement:
"National City is experiencing no unusual depositor or creditor activity. As of the close of Friday's business, the bank maintained more than $12 billion of excess short-term liquidity. Further, as a result of our recent $7 billion capital raise, National City maintains one of the highest Tier I regulatory capital ratios among large banks."
Now here is a Bank that talks out both sides of its mouth.The Cleveland Plain Dealer just reported that one of its elite has retired. His payout is 1.l million dollars.
The federal supervisor of this bank the OCC is a laugh. The OCC and FDIC say one thing and the bank does what is wants to do. This bank has not changed it wreckless behavior.This bank is arrogant.
MLB
The question to ask is which banks will be left standing or which banks are too big to fail after the carnage. Think up of a list and put your money there.
Northern Trust is a bank that has held up well. I would guess it is super sound. At least I hope so since I have over 100T on deposit. It is the upper class bank of Chicago that has followed rich Chicagoans out to Arizona, and perhaps Florida. It isn't everywhere.
Yeah they put a three week hold on check for 18k. cost me 30 bucks in interest.
...and cost me two returned check fees + fees from other bank, pissed off my plumber after he went above and beyond in getting me a settlement from the city for tree roots to plumbing, and gave me the "we told you on your deposit slip, of course we're not at fault" BS non-excuse. I'm done ranting here, but the holds are indicative of BIG problems right now. Look at New Resource, new, sustainable, no mortgage debt, HIGH standards.
The whole idea about turning GSE's into public companies is a convoluted mess. I worked on Sallie Mae years back at the Treasury Dept and it was around the time the idea of selling shares in it was gaining traction. The enterprise did not have good fundmentals but the idea of making money - any money - for a period of time was enough to wet the appetite of certain divisions. And yet, even today, we criticize China for its "state owned enterprise" bail outs!
soundvision> A play on words but cool magazine nonetheless.
Where to put your $$? Merchants & Farmers bank. Their solid. As well as Golden one CU. Neithr "played" recklessly in the mortgage debacle. Check out the first stock price. Solid.
Deterioration in our homebuilder portfolio was more rapid than anticipated and we are
beginning to see weakness in related sectors. Even so, our overall credit quality remained
strong during the quarter relative to peer banks. We generated significant growth across most
of our loan categories, with particular focus in our commercial loan and commercial mortgage
portfolios. We achieved this growth without sacrificing either quality or yield. Our credit quality
statistics were strong, with only $12 million of net charge-offs for the period and nonperforming
assets at only 23 basis points. Our residential mortgage portfolio of over $14 billion had only
$18 million in foreclosure. However, given our current economic outlook we have adopted a
guarded outlook for the remainder of the year, said Vice Chairman and Chief Operating
Officer Philip Flynn.
Subsequent Event Sale of Insurance
Tim writes:
Should I pull my money out of WaMu?
Tim | 07.14.08 - 12:10 pm | #
mock turtle responds
if you get good service at your branch
AND the sum total of all your balances in regular accounts, is below 100,000 dollars (fdic ins level), not including 250,000 for IRA accounts which is also separately insured...
then no need to panic and run, your money is safe, i guess, unless the us gov dissolves and or FDIC goes away...
in which case nothing less than things to barter and precious metal coins will help you....
To the "should I pull my money out of X Bank" question, just a suggestion. Anyone who has enough in one bank, and only one bank, that fees are not an issue might want to consider banking at two banks. FDIC made sure that the ATMs worked this weekend at IndyMac, but as the WaMu check-holding stories suggest, you don't need a bank run to be unable to bank. Capital One recently had a brief "can't get yer money" computer episode. There are a number of reasons you might want to bank in more than one place, but if your holdings are low, it is probably too expensive to do.
...There are a number of reasons you might want to bank in more than one place, but if your holdings are low, it is probably too expensive to do.
New Resource Bank and "Technology credit union". Best deal generally, but few ATM's, with one at my company in SValley. Bank and CU refund all ATM fees.
You mean Farmers & Merchants Bank of Long Beach? I just transferred a large CD from WAMU to them, and I sure feel better....no kool-aid being downed at F&M.
Brandon writes:
Where to put your $$? Merchants & Farmers bank. Their solid. As well as Golden one CU. Neithr "played" recklessly in the mortgage debacle. Check out the first stock price. Solid.
In a fractional reserve system no bank can be said to be safe since none of them have the cash on hand to meet depositors demands. All it takes is enough NPL's for the public to lose confidence in the game and it is all over.
"no unusual depositor or creditor activity" that statement is accurate because lately it's not 'unusual' for depositors to pull their money and creditors loans to go bad. They are correct, that's usual activity for them. Heck, what else are they going to say when the stock is trading at $3.75???
True that FDIC goes up to $100,000, good luck getting the money as it can take 1 - 5 years if they actually have to step in because the bank has to actually close off all of its books, etc. before any payouts occur.
In an FDIC takeover, those below the limit (which is actually $200K for a join account, and you can funge it up to $400k with two others as benefitiary in trust) get access to the money right away.
EG, IndyMac -> IndyMac Federal: Effectively NO disruption for those below the insurance limit.
Oh my GLOD!
Cheers,
(first?)
calling Shiela...
Ruh Roh
NCC, WM and FHN all down 20% plus
It's starting to look like Paulson and Bernanke just went All IN,
........and got called.
maybe it's like when the traffic cop halts you to congratulate you on your fine driving...no, no, I guess not..
GS down below 160.
Down goes Frazier, down goes frazier!
GS to 100 anyone.
The stock market has finally begun to get the message and almost everything I follow is down, way down, today. I think capitulation is near at hand.
Should I pull my money out of WaMu?
Is commercial paper affected by this? Say T.Rowe Price Prime Reserve money market fund? ...
I know this isn't an investing blog, but as readers like me try to put information to use, I wonder -- what is the effect of bank failures on things I might own?
National City?
I think Miami Dade County keeps large amounts of money there Oops.
Maybe it's a similar name.
They're my mortgage servicer. I was hoping to pay off my mortgage in December. Before they go bankrupt. Oh well. What are the chances they lose my mortgage records?
The news is that there is no news. No unusual depositor or creditor activity. Now we'll see if the SEC's "new sherrif" thingie is real.
Should I pull my money out of WaMu?
And put it where ... SunTrust ?
Bank run rumors... this is going to be a fun summer.
My point exactly Ray. I don't know maybe Wells Fargo.
I've been begging the hub to get it out of there, to no avail. Not that much tho.
Must go to court.
On what else, a mtg foreclosure.
Put your funds in your local credit union if you want to safe side against solvency
Quit your whining. When I co-sponsored the Commodity Futures Modernization Act of 2000, nobody complained.
There are winners and losers. I won.
Is this IT? Nah.....when the National Park system and vast tracts of Federally owned land are sold to OPEC, THAT will be IT! Could happen.
Tim writes:
Should I pull my money out of WaMu?
Beating this one to a pulp lately, but my wife and I had a combined 20 years with WAMU, and after they put a near 3 week hold on multiple checks - one $416!, we have had enough and have completed the switch to a "New Resource" bank this weekend, mortgage coming out of the new one as of this A.M. No more letters of non-explanation as to why they returned a 7.4 K check to our plumber TWICE, with a balance of 30K!! FU WAMU, and good riddance!
Please do not panic, all is well....
In response to market rumors, National City Corporation today issued the following statement:
"National City is experiencing no unusual depositor or creditor activity. As of the close of Friday's business, the bank maintained more than $12 billion of excess short-term liquidity. Further, as a result of our recent $7 billion capital raise, National City maintains one of the highest Tier I regulatory capital ratios among large banks."
Expired
I know a lot of people are smiling, but I am worried.
the rot runs very deep. are there any banks that are immune?
won't help me to do super well on my SKF and SDS and TWM and all if I lose my job.
Yearning To Learn writes:
I know a lot of people are smiling, but I am worried.
the rot runs very deep. are there any banks that are immune?
No mortgage debt at "New Resource".
repeating myself....
does regional bank failure affect money market funds invested in "commercial paper?"
Who is on the hook? Besides FDIC on the one hand and depositors on the other....
(or mortgagor and mortgagee...)
who else, institutionally, has lent money to these banks?
Now here is a Bank that talks out both sides of its mouth.The Cleveland Plain Dealer just reported that one of its elite has retired. His payout is 1.l million dollars.
The federal supervisor of this bank the OCC is a laugh. The OCC and FDIC say one thing and the bank does what is wants to do. This bank has not changed it wreckless behavior.This bank is arrogant.
MLB
I just sold BPOP. I got it so cheap I still had a profit, but I fear it may go under, completely.
Tim writes:
Should I pull my money out of WaMu?
Tim | 07.14.08 - 12:10 pm | #
Anything over $100K, yes, below that the FDIC will provide.
The question to ask is which banks will be left standing or which banks are too big to fail after the carnage. Think up of a list and put your money there.
Even a super sound bank like USB that Buffett bought a lot of is way down. Way down. I sense a kind of bank panic.
I repeat for the umpth time, that we would not be having this "panic" if we had a national bank where money would be safe.
Quit your whining. When I co-sponsored the Commodity Futures Modernization Act of 2000, nobody complained.
There are winners and losers. I won.
Phil Gramm (R-UBS) | 07.14.08 - 12:13 pm | #
Of course no one complained, they were all asleep when you pushed through the Enron loophole in the middle of the night
soundvision
Yeah they put a three week hold on check for 18k. cost me 30 bucks in interest.
Northern Trust is a bank that has held up well. I would guess it is super sound. At least I hope so since I have over 100T on deposit. It is the upper class bank of Chicago that has followed rich Chicagoans out to Arizona, and perhaps Florida. It isn't everywhere.
soundvision
Yeah they put a three week hold on check for 18k. cost me 30 bucks in interest.
...and cost me two returned check fees + fees from other bank, pissed off my plumber after he went above and beyond in getting me a settlement from the city for tree roots to plumbing, and gave me the "we told you on your deposit slip, of course we're not at fault" BS non-excuse. I'm done ranting here, but the holds are indicative of BIG problems right now. Look at New Resource, new, sustainable, no mortgage debt, HIGH standards.
Jim, given the corruption and graft at all levels in our political system, what makes you think that a national bank would be "safe"?
People over on the Yahoo National City comment board don't seem to be very happy.
Whiners.
GSE=SOE
The whole idea about turning GSE's into public companies is a convoluted mess. I worked on Sallie Mae years back at the Treasury Dept and it was around the time the idea of selling shares in it was gaining traction. The enterprise did not have good fundmentals but the idea of making money - any money - for a period of time was enough to wet the appetite of certain divisions. And yet, even today, we criticize China for its "state owned enterprise" bail outs!
soundvision> A play on words but cool magazine nonetheless.
Where to put your $$? Merchants & Farmers bank. Their solid. As well as Golden one CU. Neithr "played" recklessly in the mortgage debacle. Check out the first stock price. Solid.
Union Bank seems immune to most of this...Tight and sound underwriters..
http://www.uboc.com
last 10Q
https://www.snl.com/Cache/1001140747.PDF?FID=1001140747&O=PDF&T=&D=&IID=1022285&Y=
Deterioration in our homebuilder portfolio was more rapid than anticipated and we are
beginning to see weakness in related sectors. Even so, our overall credit quality remained
strong during the quarter relative to peer banks. We generated significant growth across most
of our loan categories, with particular focus in our commercial loan and commercial mortgage
portfolios. We achieved this growth without sacrificing either quality or yield. Our credit quality
statistics were strong, with only $12 million of net charge-offs for the period and nonperforming
assets at only 23 basis points. Our residential mortgage portfolio of over $14 billion had only
$18 million in foreclosure. However, given our current economic outlook we have adopted a
guarded outlook for the remainder of the year, said Vice Chairman and Chief Operating
Officer Philip Flynn.
Subsequent Event Sale of Insurance
Tim writes:
Should I pull my money out of WaMu?
Tim | 07.14.08 - 12:10 pm | #
mock turtle responds
if you get good service at your branch
AND the sum total of all your balances in regular accounts, is below 100,000 dollars (fdic ins level), not including 250,000 for IRA accounts which is also separately insured...
then no need to panic and run, your money is safe, i guess, unless the us gov dissolves and or FDIC goes away...
in which case nothing less than things to barter and precious metal coins will help you....
oh,... yes and God
(not said in jest nor disrespect)
"It's starting to look like Paulson and Bernanke just went All IN,
. . .and got called."
And they just turned over a pair of Jokers.
shiela, this is a conference call, can you wait, we have 7 banks online now
To the "should I pull my money out of X Bank" question, just a suggestion. Anyone who has enough in one bank, and only one bank, that fees are not an issue might want to consider banking at two banks. FDIC made sure that the ATMs worked this weekend at IndyMac, but as the WaMu check-holding stories suggest, you don't need a bank run to be unable to bank. Capital One recently had a brief "can't get yer money" computer episode. There are a number of reasons you might want to bank in more than one place, but if your holdings are low, it is probably too expensive to do.
May I proclaim Bush, McCain, Bernanke, and Paulson's greatness at this point, or is it a bad timing?...
k harris writes:
...There are a number of reasons you might want to bank in more than one place, but if your holdings are low, it is probably too expensive to do.
New Resource Bank and "Technology credit union". Best deal generally, but few ATM's, with one at my company in SValley. Bank and CU refund all ATM fees.
You mean Farmers & Merchants Bank of Long Beach? I just transferred a large CD from WAMU to them, and I sure feel better....no kool-aid being downed at F&M.
Brandon writes:
Where to put your $$? Merchants & Farmers bank. Their solid. As well as Golden one CU. Neithr "played" recklessly in the mortgage debacle. Check out the first stock price. Solid.
You mean Farmers & Merchants Bank of Long Beach?
Yes. Thus why I'm not in Banking. What's a decimal point reversed....
In a fractional reserve system no bank can be said to be safe since none of them have the cash on hand to meet depositors demands. All it takes is enough NPL's for the public to lose confidence in the game and it is all over.
"Tim writes:
Should I pull my money out of WaMu?
... we have had enough and have completed the switch to a "New Resource Bank"
everyone, including me, is going to New Resource..
"no unusual depositor or creditor activity" that statement is accurate because lately it's not 'unusual' for depositors to pull their money and creditors loans to go bad. They are correct, that's usual activity for them. Heck, what else are they going to say when the stock is trading at $3.75???
True that FDIC goes up to $100,000, good luck getting the money as it can take 1 - 5 years if they actually have to step in because the bank has to actually close off all of its books, etc. before any payouts occur.
Susan: that is incorrect.
In an FDIC takeover, those below the limit (which is actually $200K for a join account, and you can funge it up to $400k with two others as benefitiary in trust) get access to the money right away.
EG, IndyMac -> IndyMac Federal: Effectively NO disruption for those below the insurance limit.