Announcement

Collapse
No announcement yet.

Top Economist: Americans Should Worry About Bank Deposits if Congress Doesn't Act

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Top Economist: Americans Should Worry About Bank Deposits if Congress Doesn't Act

    Posted Sep 15, 2008 12:58pm EDT by Aaron Task in Investing, Recession, Banking
    Related: LEH, MER, BAC, AIG, WM, ^DJI, ^GSPC
    With the "financial storm of the century" hitting financial institutions, many Americans are worried about the safety of their bank deposits. While the FDIC insures individual accounts up to $100,000, the reaction to IndyMac's failure this summer -- lines outside retail branches -- shows Americans have limited faith in the Federal Deposit Insurance Corp., which guarantees individual accounts up to $100,000.

    Such concerns are justified, says Nouriel Roubini, of NYU's Stern School and RGE Monitor, who notes there is already a "slow-motion run on retail banks" occurring nationwide.

    That "run" could accelerate as people realize the FDIC fund has about $50 billion to "insure" about $1 trillion in assets at the nation's financial institutions, says Roubini. "They're going to run out of money" unless Congress acts soon to recapitalize the FDIC.

    In addition, the recent spike in number of banks on the FDIC's "troubled list" is only through June, meaning even that inflated number understates the problem.

    The intent here isn't to add to people's anxieties, but Roubini is one of the few market watchers to correctly predict the severity of this ongoing credit crisis. If nothing else, he says people with accounts exceeding $100,000 in value should spread their money - and the risk - among different firms.


    http://finance.yahoo.com/tech-ticker...ess-Doesnt-Act

  • #2
    Tuesday, 26 Aug 2008
    Stop Trading!: Don't Buy These Banks
    Posted By:Tom Brennan
    Topics:Stock Picks | Stock Market
    Companies:Anadarko Petroleum Corp | XTO Energy Inc | Halliburton Co | Nabors Industries Ltd | Bristow Group Inc | Oceaneering International, Inc. | Corus Bankshares Inc | Downey Financial Corp | BankUnited Financial Corp

    The Federal Deposit Insurance Corp. released its list of troubled banks Tuesday afternoon. The number rose this quarter to 117 from 90 at the last report. The list, though, consists of only numbers, no names, so there’s no definite proof that any specific bank is mentioned. Cramer has his own ideas, though.

    BankUnited [BKUNA 0.67 -0.05 (-6.94%) ] received notice from federal regulators that it needed to raise $400 million in capital or risk a capitalization downgrade, Cramer said during Tuesday’s Stop Trading!, and Downey Financial [DSL 1.57 0.10 (+6.8%) ] and Corus Bankshores [CORS 4.65 -0.40 (-7.92%) ] are in similar positions. IndyMac, he pointed out, also got a notice to raise capital just before it went under. So investor might want to stay away from these three banks.




    Switching to energy, Cramer called trading on the possible approach of hurricanes “a very dicey thing.” That kind of play puts you in names like Oceaneering International [OII 56.88 -1.98 (-3.36%) ] and Bristow Group [BRS 38.01 -1.04 (-2.66%) ], which will decline if the hurricane takes an unexpected turn.

    Given the strength of natural gas right now, Cramer would rather see investors in Nabors [NBR 26.97 -1.93 (-6.68%) ] and Halliburton [HAL 35.45 -1.85 (-4.96%) ]. These oil-and-gas services names should get plenty of business considering the amount of drilling being done by XTO Energy [XTO 48.97 -1.23 (-2.45%) ] and Anadarko Petroleum [APC 52.80 -4.09 (-7.19%) ]. Cramer also praised Anadarko for its huge buyback, 18% of shares outstanding, saying the company is “swimming in cash.”






    Questions for Cramer? [email protected]

    Questions, comments, suggestions for the Mad Money website? [email protected]

    © 2008 CNBC, Inc. All Rights Reserved


    Tools:PrintEmail Del.icio.us Digg ItNext PostPrevious PostBack to Main Page
    Permalink: http://www.cnbc.com/id/26406049/site/14081545/MORE FROM CNBCTOPIC : Stock PicksView AllHeadlines
    What the Pros Say: Investing Tips after Lehman Fall
    The Week & You: Bleak Week, Hot Stock Picks
    CVS CEO Says Longs Offer Is 'Full and Fair'Posts
    Financial Stocks: The Survivors
    Lehman Brothers: A History
    Commander Planet SlideshowVideo
    Stop Trading, Listen to Cramer!
    Cinderella Financials
    Financial Stock PicksTOPIC : Stock MarketView AllHeadlines
    Investors Avoid Panic, Start Looking for Bargains
    US, Europe Indexes May Fall at Least 10% by mid-October
    Euro Shares Tumble after Lehman FailurePosts
    Financial Stocks: The Survivors
    Traders See More Bank M&A's As REITS Hit Hard
    Lehman Brothers: A HistoryVideo
    AIG in Talks with Warren Buffett
    AIG in Talks with Warren Buffett
    Euro Stocks Sink on Lehman FailureCOMPANY : Anadarko Petroleum CorpView AllHeadlines
    Sector Snap: Oil and gas stocks dive
    Anadarko donates $1.5 million to Univ. of Wyoming
    Winning bidders on Pennsylvania drilling leasesPosts
    Lightning Round: eBay, Anadarko, First Solar and More
    Stop Trading!: Friday's Market Turnaround Explained
    Stop Trading!: Focus on Housing, BankingVideo
    Anadarko CEO on Palin
    Weathering GustavCOMPANY : XTO Energy IncView AllHeadlines
    Sector Snap: Oil and gas stocks dive
    Commodities bubble burns big investment funds
    XTO Energy hedges 50 percent of '09 productionPosts
    Natural Gas Stocks: Better Than Oil
    Dow Rallies; Closes Sharply Higher
    Picking Storm Stocks: Natural GasVideo
    Trading Block
    Refineries Up and Running
    Market BuzzCOMPANY : Halliburton CoView AllHeadlines
    Halliburton sinks after Goldman favors Transocean
    Movers roundup: Halliburton, Comerica
    DOJ: Ex-KBR chief pleads guilty to bribery chargesPosts
    S&P's New "Buy 'Em Like Buffett" Stock Screen
    Lightning Round: FedEx, Deere, Dow Chemical and More
    Stock Picks: Clean Up On Storm CleanupVideo
    Reshaping Wall Street
    Banking Sector Anxiety
    The SEC Role

    The Federal Deposit Insurance Corp. released its list of troubled banks Tuesday afternoon. The number rose this quarter to 117 from 90 at the last report. The list, though, consists of only numbers, no names, so there’s no definite proof that any specific bank is mentioned. Cramer has his own ideas, though.

    BankUnited [BKUNA 0.67 -0.05 (-6.94%) ] received notice from federal regulators that it needed to raise $400 million in capital or risk a capitalization downgrade, Cramer said during Tuesday’s Stop Trading!, and Downey Financial [DSL 1.57 0.10 (+6.8%) ] and Corus Bankshores [CORS 4.65 -0.40 (-7.92%) ] are in similar positions. IndyMac, he pointed out, also got a notice to raise capital just before it went under. So investor might want to stay away from these three banks.

    Switching to energy, Cramer called trading on the possible approach of hurricanes “a very dicey thing.” That kind of play puts you in names like Oceaneering International [OII 56.88 -1.98 (-3.36%) ] and Bristow Group [BRS 38.01 -1.04 (-2.66%) ], which will decline if the hurricane takes an unexpected turn.

    Given the strength of natural gas right now, Cramer would rather see investors in Nabors [NBR 26.97 -1.93 (-6.68%) ] and Halliburton [HAL 35.45 -1.85 (-4.96%) ]. These oil-and-gas services names should get plenty of business considering the amount of drilling being done by XTO Energy [XTO 48.97 -1.23 (-2.45%) ] and Anadarko Petroleum [APC 52.80 -4.09 (-7.19%) ]. Cramer also praised Anadarko for its huge buyback, 18% of shares outstanding, saying the company is “swimming in cash.”

    Comment

    Working...
    X