Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-11-2008, 02:52 PM   #241
Full time employment: Posting here.
 
Join Date: Oct 2006
Posts: 898
Quote:
Originally Posted by Gumby View Post
Actually, banks cannot be debtors in bankruptcy (11 USC Sec. 109(b)(2) for those who want to see for themselves). I believe that it would be a receivership proceeding under the auspices of the Office of the Comptroller of Currency. I don't know the rules for that, but I assume depositors have the highest priority.
Actually, you have it partially correct. Bank receivership proceedings are conducted under the auspices of the FDIC for any federally insured bank or thrift institution (e.g, savings and loans associations, mutual savings banks, etc). The OCC regulates national banks, like Citibank, N.A., and by statute, must appoint the FDIC as receiver, whenever the OCC decides to "close" a national bank for liquidity/insolvency or safety and soundness reasons.

Insured depositors, of course, get taken out by FDIC insurance. But any uninsured depositor (the amount in excess of your insured coverage) has the highest priority in the claims process, after payment of the FDIC's administrative expenses as receiver.

"Too big too fail" policy has been around since the Continental Bank failure in 1984; by "fail," I think people mean that the bank is placed in liquidation mode, where the assets and liabilities of the bank would be handled under the orderly liquidation/receivership process. The last bank that was too big too fail was Bank of New England in 1991, which drew comparisons, with the failure of Freedom National Bank, a small bank founded by Jackie Robinson, among others, in which the uninsured depositors, including several charitable orgainzations took a hit. Congress mandated that the regulators use the "too big too fail" policy under very limited circumstances, but mega-banks would probably qualify.
__________________

__________________
ChrisC 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 03-14-2008, 12:56 PM   #242
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
bsc has 115 some odd shares outstanding and 78 million traded so far

i bet by the end of the day it will be around 115 million and average volume is like 10 million. it's like every shareholder decided to sell the stock today.

for days like this,who needs coffee?
__________________

__________________
al_bundy is offline   Reply With Quote
Old 03-15-2008, 12:20 AM   #243
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,685
I eagerly await investor votes on Bernake next week

A very interesting week will be on tap for the bank stocks next week. Never in decades has their been a time where the entire world will be wondering about investor reaction to the Federal Reserve's move as they will be in the coming week.
  • If the Fed reduces rates by 1 percent down to 2 percent will a massive rally follow?
  • I would never have believed the Fed would totally abandon the US dollar what effect will that rate cut have on foreign investor confidence in the US?
  • What is the impact of the Bear Stearns buyout by the Fed?
  • The entire spectrum of bank stocks is hovering around their 52 week lows. Will these prices hold and catapult the stocks up indicating a bottom is at hand?
Until evidence conclusively proves my original thesis from one year ago incorrect I am staying with my initial conclustion there is no reason to move into these stocks. The level of unwanted financial assets is just too high and Bernake is showing absolute panic in his actions in the financial markets, if they break decisively through to new 52 week lows the market will follow with an even bigger break down than has been seen in many many years.


But if Bernake has played all the right notes and a big rate cut soothes all the fears the market should really rally and be strong from here led by the banking stocks and surpass the high of last Wednesday. I am positioned for and fear the market break scenario, primarily but I do remain alert that Bernake may possibly sneak calm into the market and allay all fears. In any case I think next week will provide a difinitive answer and not be a week of meandering around the recent mean.

The suspense is terrible, I hope it will last.
__________________
Running_Man is offline   Reply With Quote
Old 03-15-2008, 08:43 AM   #244
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
the final number was around 186 million shares trading, this is beyond belief. reminds me of the part in Cramer's book where he asks the CEO of Cendant how things are going and he is told they couldn't be better. Two days later they announce accounting problems and Cramer's $17 million stake in the company vanishes in an instant. he said his fund spent the day day trading it to minimize their losses


The Fed said the new lending facility is $200 billion. bear stearns isn't borrowing $200 billion. who else is in trouble?

and in the blogs i read they said what did bear in was Alt-A and not subprime. supposedly the Alt-A market crashed this past week because a lot of supposedly AAA rated mortgage bonds are having default rates in the 20% range. but SP said things are going to get better soon
__________________
al_bundy is offline   Reply With Quote
Old 03-16-2008, 06:42 PM   #245
Full time employment: Posting here.
 
Join Date: Feb 2004
Location: Okanagan Valley
Posts: 805
So much for Bears Stearns. JPMorgan to Buy Bear for $2 a Share: Financial News - Yahoo! Finance It is likely only the first of a few more that are going to fail. Monday may be another brutal day for financial stocks.
__________________
AltaRed is offline   Reply With Quote
Old 03-16-2008, 06:46 PM   #246
Full time employment: Posting here.
 
Join Date: Jan 2008
Posts: 798
Quote:
Originally Posted by AltaRed View Post
So much for Bears Stearns. JPMorgan to Buy Bear for $2 a Share: Financial News - Yahoo! Finance It is likely only the first of a few more that are going to fail. Monday may be another brutal day for financial stocks.
Actually the SP Futures fell and then jumped on the news. You can never tel what the market will do, Bear is belly up, I lost 98% on the stock, but since they will not have to dump their paper on the market it's now a good thing. Go figure.
__________________
RockOn is offline   Reply With Quote
Old 03-16-2008, 07:56 PM   #247
Thinks s/he gets paid by the post
 
Join Date: Dec 2007
Posts: 4,764
I don't buy individual stocks. I don't trust my educational level in regards to stock picking. If you asked me Friday. I would have said Bear was a steal at 30.
__________________
Notmuchlonger is offline   Reply With Quote
Old 03-16-2008, 08:10 PM   #248
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
Quote:
Originally Posted by RockOn View Post
Actually the SP Futures fell and then jumped on the news. You can never tel what the market will do, Bear is belly up, I lost 98% on the stock, but since they will not have to dump their paper on the market it's now a good thing. Go figure.

bloomberg.com has futures way way down

the whole deal puts a damper on ibank valuations
__________________
al_bundy is offline   Reply With Quote
Old 03-16-2008, 08:18 PM   #249
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
it will take a few days for the details to come out, but i wonder if they really bought bsc or just some assets they wanted. one of the blogs i read said bsc had a derivatives book who's value was in the trillions of $$$. that's a lot of risk to take on.
__________________
al_bundy is offline   Reply With Quote
Old 03-17-2008, 04:28 AM   #250
Thinks s/he gets paid by the post
ladelfina's Avatar
 
Join Date: Oct 2005
Posts: 2,713
They have a nice building on Madison Ave., I hear.


oops! al, you already know that..
Gary North..on the $200B Fed plan
__________________
ladelfina is offline   Reply With Quote
Old 03-17-2008, 05:27 AM   #251
Full time employment: Posting here.
Patrick's Avatar
 
Join Date: Mar 2005
Location: Northern, Florida
Posts: 925
So what do you all think, time to buy some Bear near $2?
__________________
Retired in 2006 at age 49.

"Who among us is smart enough to learn from the mistakes of others?" - Voltaire
Patrick is offline   Reply With Quote
Old 03-17-2008, 07:06 AM   #252
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
screaming buy

book value is like $80 a share and the dividend yield should jump to 25% or so
__________________
al_bundy is offline   Reply With Quote
Old 03-17-2008, 07:11 AM   #253
Full time employment: Posting here.
Patrick's Avatar
 
Join Date: Mar 2005
Location: Northern, Florida
Posts: 925
Quote:
Originally Posted by al_bundy View Post
screaming buy

book value is like $80 a share and the dividend yield should jump to 25% or so
It's already up to $4 in the premarket.
__________________
Retired in 2006 at age 49.

"Who among us is smart enough to learn from the mistakes of others?" - Voltaire
Patrick is offline   Reply With Quote
Old 03-17-2008, 07:44 AM   #254
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
my guess is that it's a mad rush to cover short positions and the geniuses who bought 30000 $30 puts last week need to buy it up as well

never traded puts and from what i remember those guys now have the right to sell them at $30 a share or something like that
__________________
al_bundy is offline   Reply With Quote
Old 03-17-2008, 12:40 PM   #255
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
anything financial is down big in heavy volume today. some names like goldman sachs are already double normal volume. bear stearns is over 100 million shares traded already. in the last 7 days every share of bsc has been traded at least twice

i guess everyone who thought it was a great deal at $30 on friday doesn't think so anymore
__________________
al_bundy is offline   Reply With Quote
Old 03-21-2008, 03:31 PM   #256
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
"Once in a Generation Opportunity to Buy Bank Stocks" - Says analyst at Punk Ziegel.


Not sure I agree... anyway, I'm already long bank stock.
__________________
Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 03-23-2008, 04:12 PM   #257
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
too soon to be sure
__________________
al_bundy is offline   Reply With Quote
Old 03-26-2008, 06:58 AM   #258
Thinks s/he gets paid by the post
BUM's Avatar
 
Join Date: Feb 2004
Location: Mid Hudson Valley
Posts: 1,778
Note to the technicians and the Bollinger Boys - KRE doublebottomed recently.

KBW Regional Bank ETF Making a Double Bottom? - Seeking Alpha




Time to pick me up some...
__________________
In a panamax down by the river.
BUM is offline   Reply With Quote
Old 03-26-2008, 07:38 AM   #259
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,543
i don't have my book in front of me, but a double bottom is only complete once it goes above the middle whatever it's called in the W.

Double Bottom (Reversal) - StockCharts.com

and the volume isn't that good on KRE, volume always confirms everything
__________________
al_bundy is offline   Reply With Quote
Dividends to be cut soon for major banks
Old 03-28-2008, 12:34 PM   #260
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,685
Dividends to be cut soon for major banks

Whitney: Citi to cut dividend again - Mar. 28, 2008
__________________

__________________
Running_Man is offline   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
Anyone like bank stocks? Hamlet Stock Picking and Market Strategy 76 08-14-2007 04:31 PM
Bank stocks brewer12345 FIRE and Money 7 10-20-2005 12:30 PM
Swedroe comments on buying individual stocks. Nords FIRE and Money 27 10-12-2005 10:20 PM
Net Bank - Poor Customer Service Lancelot Other topics 7 09-22-2005 05:51 AM
Bank Preferred Stocks Jason FIRE and Money 1 08-19-2004 09:34 AM

 

 
All times are GMT -6. The time now is 09:34 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.