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]

5 Banks Are “Dead Men Walking”

From Our “Floating in the Fish Tank” Dept.
Looks like another prediction is coming true. Back in 2007 I warned my friends/family/co-workers of the 25 banks most likely to fail. I closed all my accounts at Wells Fargo. When I launched Meltdown2011.com in Feb 2008 I published the same warning on this site. 

dead-men-walking400x355

See who they name? Citibank, Bank of America, HSBC, Wells Fargo (which bought already-failed Wachovia last year).

These are the banks I named back in Sept 2007 and reminded you of shortly after starting this site in Feb 2008 when I asked you Is Your Bank a Casino? 

derivatives-by-bank405x287

Six-for-six–now be honest, don’t you like getting your headlines a year+ early? I thought so!

Oh, BTW, notice #17 and #23 on the list. Yep, they’re floatin’ in the fish tank, too.

Prediction
Wonder what’ll happen to the other 17 banks on the list within another, oh, 18 months, maybe… I don’t really have to spell it out, do I?

 Scott

Related:
FDIC Gears Up for Bank Failures
…They Will Kill Us All
Is Your Bank a Casino?

JPMorgan Is Fed’s Fair-Haired Golden Boy


Now I get.

Now I understand why the Fed quietly slipped $138 billion to JPMorgan Chase last week.

Check it out:
1) JPMC is given a sweetheart deal to buy the carcass of Bear Stearns last spring.
2) Then it comes out JPMC is the financial entity the Fed has been using to manipulate the stock market and bash gold/silver (yes, THEY are the ones to blame for it).
3) Then the Fed slips $138 billion under the table to JPMClast week and lets them dump a chunk of their toxic derivatives crap into the sinking hulk of an abandoned Lehman Bros.
4) JPMC is David Rockefeller’s bank. 91 year old DR is THE money power in the US.

Now JPMC gets to cherry-pick the assets of freshly-failed Washington Mutual, using the Fed’s money.

So, I ask, which bank deserves to fail most in this derivatives-led US economic crash? Could it be the bank that has gambled more on these “financial weapons of mass destruction” than all other banks combined?

JPMorgan Chase, you say? Aw, you cheated! You clicked the report to the right that shows JPMC has $91 trillion gambled on derivatives. That’s EIGHT TIMES the entire annual economic output of the US.

“So what,” I say. They will be the last bank to fail! JPMC is the Fed’s fair-haired golden boy.

What does this mean? I suggest many more banks will fail. When a large bank, like WaMu goes under, JPMC will be in the mix, dumping their toxic debt garbage into them as they go under.

So, in a real twisted world, it may be that the safest bank to have your money in is the one the crooks turn to when they’re in trouble: JPMorgan Chase.

For your amusement here’s a list of the country’s biggest bank failures:

◊◊◊◊ Now: Gold @ $885.90, Silver @ $13.45, USDX @ 77.07 ◊◊◊◊
◊◊◊◊ Now: DJIA 10,949.50