Another one bites the dust.....FDIC takes over 1st National Bank of Nevada, First Her

Quote from Daal:There is something I dont understand about this. why is it that other banks are acquiring deposits? as far as I know deposits are liabilites on the balance sheet and if they are not matched by good assets then thats no good
More...
I think the key can be found in this paragraph of the FDIC press release:

In addition to assuming all of the deposits of the banks, Mutual of Omaha Bank will purchase approximately $200 million of assets from the receiverships. Mutual of Omaha Bank will pay the FDIC a premium of 4.41 percent to assume all the deposits. The FDIC will retain the remaining assets for later disposition.

Mutual of Omaha is only buying the good assets, FDIC is keeping the non-performing assets (I assume sub-prime mortgages, etc.)

Jack
 
Still it doesnt addup. they have combined $3.2B in deposits, if they assumed it all it would need to come with around that much in safe assets. maybe the $200m is a few billion of bad loans that they got a bargain price for
 
Quote from The Kin:

Why not $5 or $2?
More...

Yes, I should have had this mentality a few weeks back.

I learned a lesson with WB trying to bet on JPM as a white knight. It seemed to me all signs were there. WB has GS, known for fasciliting slales looking at thier books. JPM was rumored to want southern exposure.

I was burned in true noob style. JPM may still want them. The recent complaints Dimon commented on about having to show risky assets after an acquisition and the separation of assests going on at WB again raise my eyebrow. But they wont get me again lol. Dimon may take WB at 20 or he may take it at 5. Given the choice....

Makes me not short WB, but I wont be burnt again.
 
I can guaranteed you that WB is at least a 10-1 dog to be acquired by JPM. And I'm being conservative here. They are levered 3-1 with pay option arms, listen to dimion on charlie rose, he wont buy them, bove is a moron. if they do it, it will be because the fed forced them and it will be for $0.10c a share or something
 
And fools still think a bottom is near. It's not over until at least 20%-25% of the 7000-8000 banks fail. This is different from the past. People look back and compare this to the late 80's early 90's recession, you have to be an idiot to think this is similar to past economic downturns.
 
Quote from S2007S:

And fools still think a bottom is near. It's not over until at least 20%-25% of the 7000-8000 banks fail. This is different from the past. People look back and compare this to the late 80's early 90's recession, you have to be an idiot to think this is similar to past economic downturns.
More...

And how does this help a TRADER trade?
 
Quote from Landis82:

And how does this help a TRADER trade?
More...

Yes. For the few of the thread's contributors who are traders then a more useful question would be "if xxxx then what impact will it have on the trading environment and what will we have to do differently?"
 
Ok lets see,,banks borrow funds from the fed cheap, pay depositors 1% or so,,,and charge credit card holders 20%, and those that bounce checks $35, fees alone generate 17 billion pr yr in revenue...Please tell me how these guys lost money! It can NOT all be because of greed alone.
 
You must log in or register to reply here.
Back
Top