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Why wait for the U.S. Treasury Department's bank stress test when Money Morning can highlight the four secrets that will let you separate the winners from the losers in the U.S. banking system?
Call it the "Money Morning Bank Stress Test."
Back in February, I looked at the Top 12 U.S. banks, to determine whether it was really necessary – as U.S. Treasury Secretary Timothy Geithner was proposing at the time – to devote the enormous sum of $1.5 trillion of our money to bail them out. I came to the conclusion that such a huge bailout was unnecessary, and that only a few of the Top 12 banks seemed in any danger of collapse. Fortunately, policymakers and the market have now come to agree with me.
Where would Bank of America be if it could separate from the apparent shotgun merger with Merrill Lynch and divesting Merrill's toxic baggage also?
I am always amused by the apparent notion that the only banks that operate in the US are American. Why don't you prepare an analysis on non-US banks for comparison purposes.
great explaination of the banking fiasco…
what a waste of taxpayer dollars in bailing out the Zombies
the cronies at work protecting their pals!!
Thanks for your sharing. It is useful for me.
There's been so much written and spoken about the "troubled banks" of the American Banking Empire that, for many of us, our eyes glaze over now to hear another banking report. However, this one analyzes well the actual problems, and potential near-future potential of the banks that most of us use, either commercially or at least with our credit cards. After reading Mr. Hutchinson's article, I feel that I know both what to expect with these top banks, and what to watch out for with those still failing in spite of all the money being poured into them by the Obama administration.
The question that remains is this: will the Obama administration be wise enough to let those "zombie banks" of this list die and be buried, or will they still want to throw good money after bad and try to prop up all these banks in spite of the bad business sense this implies?
Thanks for actually useful information.
With + 2,5 trillons of explosive exposure -as already reported – if zombies and prospective zombies go under how the financial market can afford the additional systemic risks? Guess that FDIC and the Treasury have enough taxpayers money to tap the holes!.
I am afraid that I have to agree to disagree over JPM/Chase. Its derivative portfolio and possible criminal activity in naked shorting the Gold market will cause hege problems in the near future as 1.1 trillion in ARMS [ALT-A aand Interest Only Options] reset May 2009 to Aug 2012. 60% to 80% of these mortgages are 40 -50% underwater and are going to implode and default sinking all the markets till at least 2012.
The train is on the tracks, the bad deals are locked in contracts. The assetvaluescan go away, the debt locked in a contract cannot.
I really enjoyed reading your article Re; stress test on 13 banks. It was just the atricle I was looking for. I am a small potato investor with about a million and a half invested in a number of companies and was considering some shifting of bank holdings, but after reading your report I'm sticking with the bank stock I have, which happen to be the top three you named. Thank you.
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