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Old 07-03-2009, 12:32 AM
 
Location: Great State of Texas
86,068 posts, read 77,030,912 times
Reputation: 27654

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Interesting rumor based on Fed Funds rate shooting from 1% to 7% for "some bank". The blog says last time this happened Lehman went belly up.


Is a Bank in Trouble? What the Fed Funds Say - MarketBeat - WSJ

snippet:
"There’s been some chatter in the market this week about whether a bank may be in trouble. The source of the concern is an anomaly in the federal-funds rate, that’s the rate banks charge each other to borrow money overnight."
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Old 07-03-2009, 03:31 AM
 
20,194 posts, read 21,626,026 times
Reputation: 9235
That's the reason I don't want to invest in any big bank right now.... the government made it just way too uncertain... I am sure one of the big banks is going to go bankrupt but I don't know which one... Citigroup? BAC? Wachovia? BBT? I don't know... If one went bankrupt it would cause other fragile ones to do the same and then I can at least feel me assured to invest but its just way too much risk for my taste even though BAC made good returns (so far)....
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Old 07-03-2009, 10:32 AM
 
14,256 posts, read 16,283,516 times
Reputation: 13759
I have steered clear of individual bank shares and stuck to FAS and FAZ combined with covered calls on each.
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Old 07-03-2009, 04:29 PM
 
Location: home state of Myrtle Beach!
6,427 posts, read 20,390,004 times
Reputation: 3639
Fodder for the rumor mill...

BOA recently sold my parents mortgage to Fannie or Freddie!
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Old 07-11-2009, 11:04 AM
 
Location: Great State of Texas
86,068 posts, read 77,030,912 times
Reputation: 27654
Do we have a winner folks ?

CIT Group hires premier bankruptcy adviser - Yahoo! News (http://news.yahoo.com/s/ap/20090711/ap_on_bi_ge/us_cit_bankruptcy_adviser_1 - broken link)
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Old 07-11-2009, 11:47 AM
 
Location: Texas
4,938 posts, read 7,166,847 times
Reputation: 5517
Nice... I bank with a bankrupt institution.
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Old 07-11-2009, 11:49 AM
 
Location: Great State of Texas
86,068 posts, read 77,030,912 times
Reputation: 27654
CIT is not Citi ..just FYI.
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Old 07-11-2009, 11:50 AM
 
Location: Texas
4,938 posts, read 7,166,847 times
Reputation: 5517
Quote:
Originally Posted by Jaggy001 View Post
I have steered clear of individual bank shares and stuck to FAS and FAZ combined with covered calls on each.
Them leveraged ETF's are dangerous over time. Seems like the best way to play them would be to short them (particularly FAS) since they eventually head to zero in a volatile markets. Don't hold for more than a few days at a time and put in a stop loss. I learned that lesson the hard way.
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Old 07-12-2009, 04:59 PM
 
Location: Seattle, WA
209 posts, read 557,055 times
Reputation: 87
CIT does have a banking operation in Utah so that would fit the timing.
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Old 07-13-2009, 06:11 AM
 
12,869 posts, read 13,734,652 times
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CIT already received $2.3 billion in government bailout funds in December, as part of the $700 billion rescue fund created by Congress last October. It had to convert to a bank holding company to access the money.

CIT is awaiting word on whether it will receive funds from the Federal Deposit Insurance Corp.'s Temporary Liquidity Guarantee Program, which lets cash-squeezed companies issue government-backed bonds to raise capital at a lower cost. As of June 8, the program has backed $335.4 billion dollars of debt.(malaysia news)

Last edited by floridasandy; 07-13-2009 at 06:38 AM..
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