18 Banks Inch Closer to the Precipice

bank-cracked_120x85Standard & Poor’s downgraded the creditworthiness of 22 18 banks [link] including:
Wells Fargo “AA-,
US Bank “A-,
Fifth Third Bank “BBB[what the ratings mean]

“We believe the banking industry is undergoing a structural transformation that may include radical changes with permanent repercussions,” said Standard & Poor’s credit analyst Rodrigo Quintanilla.

Oh, this is getting interesting! The Street, Jim Cramer’s former company, offers free online bank ratings. I’ve checked ’em for years now.

Well, for 15+ years I had banked with Wells Fargo. There the nation’s second-largest bank by market cap, in deposits, home mortgage servicing, and debit card. I left them in 2006 when I discovered their outrageous exposure to derivatives. [Is Your Bank a Casino?]

I warned about WF (and others in the spring in 5 Banks Are “Dead Men Walking”.

Well, look where Wells Fargo is today:

Wells Fargo D+

Full report is here.

Anyone taking bets on how long they’ll last? I put my money on them being dead/sold off by Nov 26, 2009.

And if you bank with them don’t worry, the FDIC insures your deposits up to 250,000 per account owner.*

*The FDIC may take up to 99 years to return your money. [link] They (not you) will decide the payout schedule based on what they perceive as your need. And, only 1/4 of 1% of your deposit is actually backed with payout reserves. [link]


6 Responses

  1. Top Ten New Names for the FDIC:

    10) Finance Dubai Inhabitant Cheney
    9) Flaunt Debt, Impoverish Citizens
    8) Forget Discretion, Invest Cramer
    7) Failing Dollar Is Choreographed
    6) Fancy Dressed Inbred Criminals
    5) Funnel Dollars Into Caymans
    4) Federal Debasers In Charge
    3) Float Dollars Into China
    2) Fill Dumpsters in Cash
    1) Fiat Dollar is Criminal

  2. Another Friday, another 5 banks went bankrupt, including
    the largest bank of the year.
    FDIC Chairwoman Sheila Bair commented,
    “Another 4 Billion? No problem, because the Treasury has
    plenty of paper and ink. The FDIC is chock full of integrity,
    just ask our CFO, you know, the new one, not the one that hung himself.
    Well, I gotta’ run now and catch the Goldman Sachs
    Gulfstream jet to Aruba for the weekend. Ciao!”

  3. Three more banks went belly up. Two in Florida and one
    in Oregon. This news was released on Saturday, August 8th
    to mitigate stock market damage.
    FDIC = Fiat Dollars in Crates.

  4. http://www.bizjournals.com/albuquerque/stories/2009/07/13/daily34.html?ana=from_rss

    Wells quietly sells $600 million in troubled subprime loans

  5. if the government declares a bank holiday, will this be like in brazil where they got their money out of the banks in small amounts over 2-3 years, is this the govs plan so if the dollar is devalued you cant get the money out until it has been devalued and or it becomes worthless.

  6. 3 more banks went belly up last night, in California, Georgia,
    and Minnesota. Again on a Friday night.
    That is 45 banks so far this year.
    Sneaky bank failures + CFO suicide = fishy smelling FDIC.

    What do Bernard Madoff, (Paulson’s man) Neil Kashkari, and FDIC
    Chairwoman Sheila Bair have in common?

    Pronounce their names and win a clue to their role!
    Bernard “Made off” with $7 billion.
    Neel “Cash carry” is Paulson’s $700 billion boy.
    Sheila “Bare” is what the FDIC will be.

    My 2 cents.


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