Be afraid........Be VERY afraid.
Posted on 02/17/2010 8:09:04 AM PST by blam
Citi: The Biggest Threat To Banks Is The Pitchfork-Wielding Public
Vincent Fernando
Feb. 17, 2010, 10:11 AM
Citi's Ryan O'Connell worries that if the U.S. were to abolish the 'Too-Big-To-Fail' doctrine this year, it could slam the credit ratings of Too Big To Fail banks such as Bank of America, Goldman Sachs, and Morgan Stanley.
Citi is probably included in the list, but being a Citi analyst, Mr. O'Connell doesn't cover Citi.
Ryan O'Connell @ Citi: (The prospects for passage of such a bill by the Senate remain uncertain but such a development should not be ruled out). In the short-term, passage of such legislation could lead to multiple- notch downgrades for several institutions including Bank of America, Goldman Sachs and Morgan Stanley.
...
If the legislation passes and downgrades result, the potential consequences include reduced access to the short-term funding markets and increased collateral requirements related to derivative transactions and repo financing transactions, we believe.
[snip]
(Excerpt) Read more at businessinsider.com ...
Ohhh.. poor babies.
Anyone know the normal amount of mortgage payments you can make on a home loan before they foreclose? I always thought six - There was a story in our local paper that these two doctors did not make a payment for 2 years and are still living in the house because it cannot be sold.
citi...the citi that gave people 29.9 rates? Poor, poor pitiful them. GAH!
Actually, the biggest threat to banks is the banks, themselves, and their greedy "Rip Off the Customer at All Costs" policies.
They'll get no tears from me.
As opposed to the vastly inflated value the mortgage was written for.
The position of many of the banks (hysterically peddled here by a few freepers caught up in the collapse) has been that they couldn't know the real estate was that inflated Or that it really doesn't matter that they sold those loans to consumers.
If you run a con, it behooves you to get all the money from the mark before the scam is exposed.
there was a ceo today on cnbc,
their priority for home rescues was:
refinance
modify
short sale
AND THEN
principle reduction
Why not just short sale to the current occupant and REAL market value?
If you live in a state that requires a judge to actually ok the foreclosure you are now talking about up to 2 years, for example FL.
I'm flattered. As one of many who are boycotting Citi and all other recipients of Stimulus/TARP dollars stolen from the taxpayers and from our children, I would be disappointed if real Americans like me didn't constitute a big threat to those sleazy companies ... and to the sleazy politicians responsible for paying them off with our money.
That is the same as a principal reduction.
I don’t care how big they get as long as the taxpayers are not required to bail them out.
TARP was the largest heist in history and everyone assoicated it are guilty of treason.
Wow—I think it is much faster in Arizona, or so it seems. I do not know if a judge is needed here or what the timing is on these.
The banks have been covered by the TARP money.
They coulde give teh person the house at 20% and still be ok.
Quite right! “We” the people don’t realize just how much power we have with this. We even trump any power the Government has in meddling with the economy. If just one third of all US depositors withdrew their money all at once, it would collapse most of the major banks. Overnight, a lot of the major banks would be in defualt of US regulations regarding capitlization. Banks must maintain a minimum ratio (I believe it is 60%) of cash (Capital) to loans (Debt). Right now, although we are (Meaning the US banking system as a whole) still under the magic 100%, tettering at 98% deposits to loans, that could change very quickly if 1/3rd withdrew their money overnight.
For some banks, not so healthy, it would leave them with less than 60% deposited capital to loan ratio, and force them to sell the debt within 30 days. The banks think they have all the power, and to some extent they do, since the majority of American’s are incapable of organizing such a rebellion, but it could be done. All you need is a very reputable voices all saying the same thing, and whamo, panic ensues..
Tim-
There are lots of stories out there of people going 2+ years without making a payment. The banks drag their feet on foreclosing because it keeps that bad debt off their balance sheets.
Sounds like a Mexican standoff to me.
Sooner or later it’s all going to blow up again. The only question is how much more taxpayer money is going to be crammed in the toilet that is ‘high finance’.
Be afraid........Be VERY afraid.
I didn’t wield a pitchfork against big banks. I used a ball-point pen when signing the deposit slip at the local credit union when I took my money back from BoA.
F*ck ‘em. Too big to fail? BULLSH!T. Capitalism is all about risk you fascist a$$holes! You win? Good for you? You lose? At least be man enough to do the honorable thing and FRIGGIN’ JUMP!
EXACTLY.
you eliminate the whole short sale delay.
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