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More on this topic
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'We are Rapidly Moving Towards a Dangerous Time in Our History'
(When Giants Fall, 2/3/10)
Bank failures during the Great Depression
(The Mess That Greenspan Made, 2/5/10)
Br’er Rabbit Lives! Banks Now Favoring Paying “Insurance” Fee
(naked capitalism, 1/30/10)
How the Volcker Rule Misses the Shadow Banking System
(naked capitalism, 2/6/10)
RSS
Keith, if they publish a list of “troubled” banks now, they might as well close them now. To be publicly identified as “troubled” by the FDIC would put them out of business. If depositors are protected, then it would be far better for the FDIC (and therefore for the taxpayers) if these banks could be closed or merged in an orderly fashion. Not only is a run on a bank an ugly thing to behold, but with FDIC insurance in place under the current terms, such runs are unnecessary and inefficient.
Let investors panic with the Hedge Funds.
Bruce:
Agree. We never publicly publish a list of bad banks. Our approach is to let clients use this information privately, but we do not publish “dead lists” of wounded banks. Not helpful. But we do let our customers construct screens of banks with low capital or excessive use of FHLB advances, both indicators of possible problems.
Best,
Christopher Whalen
Managing Director
[...] That means we’ve got to come up with new ways to look at bank safety and soundness – particularly when it comes to increasing consumer awareness of …Read More?http://www.moneymorning.com/2008/11/08/kieth-fitz-gerald/… [...]
[...] Keith Fitz-Gerald Editor, Griger Index Investment Director Money Morning Investment News/The Money Map [...]