[Timesink]

Possible that both banks have billions of derivatives that need to be unwound. Would collapse the banking industry.

This will never happen. Both Citibank and Chase fall into the "too big to fail" category. The feds will bail them out 100% if that's what it takes to keep them from going under. Of course, in such a case, everyone at both banks of middle management rank or higher should expect to be fired, and had better find a good attorney and put him on retainer.

[crypt2k]

The feds will bail them out 100% if that's what it takes to keep them from going under.

My brother's theory: if you pull out of stocks to avoid a crash watch out for the increased taxes to cover the bailouts.

[wingnuts'nbolts]

Just like the S&L fiasco.

[Willie Green]

The feds will bail them out 100% if that's what it takes to keep them from going under.

Why izzit every time we get a One Term Bush in the White House, there's always a "bailout" of the financial institutions? Papa Bush added close to a Trillion dollars to our National Debt with the S&L Bailout. How much is Junion gonna stick us with?

[Vince Ferrer]

Both Citibank and Chase fall into the "too big to fail" category. The feds will bail them out 100% if that's what it takes to keep them from going under.

Should be read as: "Taxpayers will bail them out 100% if that's what it takes." The public was sold federal guarantees of bank deposits as a means of safety in the depression, but it also obligates them to pay for the bad decisions of the banks. The question we should be asking, is what portion of these bank's assets are actually worth real money today, and what assets are uncollectable, because we are going to have to chip in the difference.

[Baseballguy]

Calling off the tin foil hats. Come on get a grip. Bush has no need to bail the bozo's out. Most of the money that these banks have is business'es why would the Prez want to cater to them. Having a bank does not grant you imunity. Banks can go into Bankruptcy. Other banks buy the good stuff and the companies that had bad debt will go bankrupt also. I belive we are going into an age of complete thinning of false Accounting records.