Implementation of the Basel II capital rules now will require large banks in US to hold far less reserves – an exasperated FDIC may not be able to help during financial meldown and bank failures
Alex Brown
Jul. 22, 2007

The agreement in the implementation of the Basel II capital rules now will require large banks in US to hold far less reserves. An exasperated FDIC may not be able to help during the financial meltdown and bank failures.

This is the kind of news you hear after a hundred-year banking cycle top. In a victory for the big US banks, the Federal Deposit Insurance Corporation (FDIC) has dropped its insistence that the rules be redrawn if they resulted in a fall in total capital of more than 10 percent.

The regulators have also agreed to drop several other differences between the US and European regimes, which large banks said would have been very costly for them to implement.

The safety net that was there in Maerica is now gone. The FDIC is now in jeopardy. It just does not have the necessary means to bail even two large big bank failures.

It is a win for the big US bans at the cost of riskier deposits of the investors in the banks. This is something that can haunt the financial system, Federal Reserve, and FDIC during a meltdown and series of bank failures in the next several years and decades.

Although Treasuries rise most since March on subprime crisis, the party in the furthest end of the yield curve may not survive for long
Karen Zuba
The confidence in the financial systems is getting reduced. For now the Treasuries are rising for the flight to quality. But on the long run, things will be different – very nasty.
READ MORE>>

Loan losses threaten Banks to provide lower guidnace and lay of thousands in what will be known as worst depression in Banking and financial services sector
Sondra Huffington
Every bubble ends up in severe meltdowns. It happened after the dot com bubble. It happened agter the real esatte bubble. It is happening in the banking and financial services sector.
READ MORE>>

Doubling your networth with futures option spread – a slow and steady process of relatively low risk and high profit
Marla Guthrie
It is a great way to exit the stock market and at the same time keep making more money from your investments in the futures market. It can be used in your regular portfolio and also in your IRA, 401(k) ...
READ MORE>>

Implementation of the Basel II capital rules now will require large banks in US to hold far less reserves – an exasperated FDIC may not be able to help during financial meldown and bank failures
Alex Brown
The agreement in the implementation of the Basel II capital rules now will require large banks in US to hold far less reserves. An exasperated FDIC may not be able to help during the financial meltdown and bank failures.
READ MORE>>

London-based Barclays chastises and challenges Bear Sterns over subprime investment fiasco
Peter Oberois
The losses can be $400 million or more. The inscrutable conditions that exist around the facts and figure make it possible that we are just seeing the tip of the iceberg.
READ MORE>>

Higher food prices, energy price spikes, and lower wages haunt the world for the next several decades – effect on stocks, bonds, dollar, and gold
Bernie Snyder
In China the price of eggs and meat has quadrupled in the middle of a sharp shortage. There is an acute shortage of milk and drinking water in India. All these the well paying jobs in US and Europe are shrinking very fast.
READ MORE>>

MORE ARTICLES >>