Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Banking Industry Shell Game
Old 01-11-2008, 09:42 AM   #1
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,529
Banking Industry Shell Game

I'll be the first dumb SOB to admit I don't understand the financial or banking industry worth a darn but it seems to me like a shell game or three card monty with all the mergers and aquistions. Is this a ploy to keep hiding or sliding debt/defaults around so no one notices ? Just seems odd to this dumb old hick from the midwest.




WaMu Has Discussed Merger With JP Morgan Chase
Friday January 11, 8:43 am ET

Washington Mutual, the U.S. savings and loan slammed by slumping mortgage markets, has held "very preliminary" merger talks with JPMorgan Chase, CNBC has learned.
No deal is imminent but the talks were held fairly recently.

JP Morgan also may be interested in two other regional banks, Suntrust Banks (NYSE:STI - News) and PNC Financial Services (NYSE:PNC - News), and is likely to acquire one of the three sometime this year.



News of the talks comes as Bank of America (NYSE:BAC - News) announced it will acquire another troubled mortgage lender, Countrywide Financial (NYSE:CFC - News), in a $4 billion transaction.

Shares of Washington Mutual (NYSE: wm)jumped more than 12 percent to $15.90 in pre-market trade following the CNBC report.



Last month, Washington Mutual said it would slash its dividend, cut more than 3,000 jobs and raise up to $2.5 billion in fresh capital.

The Seattle-based bank also said it expected to report a net loss in the fourth quarter after recording non-cash write-downs of home loans segment goodwill. Wamu said the write-down will not hurt its key capital ratios or liquidity.

Meanwhile, SunTrust said late last month that will give a $1.4 billion boost to two of its money market funds to protect investors from possible losses. The regional banking company also said that its earnings for the fourth quarter will be hurt by material deterioration in market valuations, the outlook for consumer credit quality, Visa litigation and other items.
__________________

__________________
frayne is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-11-2008, 10:23 AM   #2
Recycles dryer sheets
Eyerishgold's Avatar
 
Join Date: Aug 2007
Posts: 222
I don't think it's a shell game. I think the "big boys" (ie JPMorgan, B of A, etc) are getting good deals by buying beaten up companies. Most of the larger banks have enough cash reserves to weather this storm and they're always on the lookout for good deals to help them grow.
__________________

__________________
Eyerishgold is offline   Reply With Quote
Old 01-11-2008, 10:51 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Are you kidding? This is the deal of a lifetime for BofA. The other big banks are licking their chops at the thought of more deals.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 01-11-2008, 02:09 PM   #4
Full time employment: Posting here.
 
Join Date: Dec 2006
Posts: 886
Imagine the customer service you'll receive when there is only one U.S. bank left.
__________________

Trek is offline   Reply With Quote
Old 01-11-2008, 02:10 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by Trek View Post
Imagine the customer service you'll receive when there is only one U.S. bank left.

It will be like banking in Canadia.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 01-11-2008, 03:04 PM   #6
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,528
According to one point of view the taxpayers are being gouged again:

"Brace yourselves, taxpayers of America. You're going to help Bank of America finance its $4 billion buyout of Countrywide."

Taxpayers to help foot BofA's $4.1 billion Countrywide bill - Jan. 11, 2008
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 01-12-2008, 05:15 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Quote:
Originally Posted by Walt34 View Post
According to one point of view the taxpayers are being gouged again:

"Brace yourselves, taxpayers of America. You're going to help Bank of America finance its $4 billion buyout of Countrywide."

Taxpayers to help foot BofA's $4.1 billion Countrywide bill - Jan. 11, 2008
Nothing unusual with this. Many companies buy struggling companies primarily for their tax losses.
__________________
clifp is offline   Reply With Quote
Old 01-13-2008, 01:14 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,264
Quote:
Originally Posted by clifp View Post
Nothing unusual with this. Many companies buy struggling companies primarily for their tax losses.

Heck YEA..... my old company had over $1 billion loss carry forward that was 'sold'... that was the biggest asset left... there were other items that totaled more than that... but it was the loss carry forward that the company wanted..
__________________

__________________
Texas Proud is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Insurance Industry Agrees Coverage Too Often Denied Sandy Health and Early Retirement 3 12-19-2007 05:40 PM
Frontline on the credit card industry donheff FIRE and Money 16 12-03-2006 08:43 AM
Another shell game for suckers scrinch FIRE and Money 0 11-20-2006 12:23 AM
American Industry has a competitive disadvantage. Maximillion FIRE and Money 1 03-20-2006 11:38 AM
Finally decided to step out from my turtle shell (lurker mode)..... planning101 Hi, I am... 4 03-15-2006 11:24 AM

 

 
All times are GMT -6. The time now is 01:09 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.