Two more banks go down...will this affect SA? (Morgan: insurance, lender)

[wCat]

Many of the Wachovia cuts were lower tier positions that ended up being surplus jobs from the merger with A G Edwards. Ryenone....you're correct that the added jobs are up overall.

Chicken little always makes me squirm!

[traficdogn]

Originally Posted by banker

Truth is, the good strong local banks like Broadway, Frost or Jefferson that didn't partake from the mortgage trough of greed or the big strong ones like Wells - would also fail if there was a run.

Pure bias and speculation. Many "local" banks have been the riskiest in different regions throughout the US. We only find out about their risk, after the collapse.

[smuboy86]

Broadway, Frost and Jefferson were among the banks to survive the Texas 80's banking crash. In fact Frost was the only one of the Big nine Texas banks to survive. They didn't go away then and they won't go away now.

[wCat]

Originally Posted by traficdogn

Pure bias and speculation. Many "local" banks have been the riskiest in different regions throughout the US. We only find out about their risk, after the collapse.

Explain "local" banks in different regions. Jefferson Bank in Dallas is rated in a risky position right now, where Jefferson in SA is rated as solid. What is your explanation for the difference if they are the "same".

[firstclassflyer]

Originally Posted by traficdogn

That link is not recommended at all. A "safe" bank on that list recently went under. Its been talked about in the blogosphere. There is no such thing as a "safe" bank. One can only diversify.


And yes, it will affect San Antonio. I just noticed driving 1604, legacy home, NuStar, Citibank, ... get the picture of who owns all those new buildings?

Link is not recommended by who? You? Or some jackhole or couple of jackholes that don't like it? Gimme a break.

[banker]

Originally Posted by traficdogn

Pure bias and speculation. Many "local" banks have been the riskiest in different regions throughout the US. We only find out about their risk, after the collapse.

No. I have worked at Broadway and am intimately familiar with Frost and Jefferson. I know for a fact that they did not build their bank around risky mortgage practices. Broadway Bank and Frost Bank are two of the strongest banks in town. They both have taken a low risk high road over their history and they are benefiting now.

Comments like yours only add to the "fear" and are based your bias. I doubt you have worked at any of these. I am a credit officer on the commercial lending side of banking and have very unique experience with these banks. I know they are sound. To suggest otherwise or to accuse other people of bias and speculation is your own attempt (like the media) to promote doom and gloom across the board.

Yes - there are weak banks - but you can not apply the risky practices of some of the regional banks located in the formerly hot real estate markets to the very sound regional banks here in San Antonio.

[Ken Muenzler]

REMEMBER--No depositor loses a penny unless he is fool enough to deposit more than $100,000 in one account.
AND
No investor loses a penny unless he is fool enough to buy a Certificate of Deposit (CD) of more than $250,000.
CHECK IT OUT!

[firstclassflyer]

BOFA buying Merrill ...and Lehman at imminent Bankruptcy....and the beat goes on...should be a wild one on Wall Street tomorrow.

[firstclassflyer]

Originally Posted by Ken Muenzler

REMEMBER--No depositor loses a penny unless he is fool enough to deposit more than $100,000 in one account.
AND
No investor loses a penny unless he is fool enough to buy a Certificate of Deposit (CD) of more than $250,000.
CHECK IT OUT!

Two things...no time frame is given for one to receive their money. They (The FDIC) could take years to pay you. No, it hasn't happened and probably won't, but it could.

Also, I believe that the FDIC only has something like $53 Billion in reserves. I believe that the IndyMac failure alone depleted something like $8 Billion. Imagine if one or two of the "Big Boys" went down.
The FDIC would probably try to raise money from other banks, and increase their timeline to pay the depositors.
Then, these other banks would raise their fees for their own depositors in order to recoup the funds that the FDIC borrowed at what would probably be very favorable terms.

[firstclassflyer]

NEW YORK - A group of global banks and securities firms announced late Sunday a $70 billion loan program that financial companies can tap to help ease a credit shortage that threatens global financial markets.

The ten banks, which include JPMorgan Chase & Co. and Goldman Sachs Group Inc., said they were committing $7 billion each for the pool. The pool would act as a signal to the marketplace that banks, brokerages, and other financial companies can lean on the fund to take care of borrowing needs.


Banks roll out $70 billion loan program - Yahoo! News (http://news.yahoo.com/s/ap/20080915/ap_on_bi_ge/banks_plan - broken link)


Well, I have mixed feelings about this. At least we won't see gov't bailouts for these firms. I need to chew on it a little while longer though..

Any of our CD forum members employed by these firms in SA?