Banks in Limbo = Financials in Trouble

Another day, another bevy of bank nationalization rumors. It is unsurprisingly crushing the banks, causing rational people to exit, and type converting the constituency for bank equity holders largely into the same people who buy lottery tickets at your local 7-11.

Here is John Hempton sagely on the subject:

But we are here in limbo. The nationalisation meme has taken hold – and nationalisation of some banks will happen. America is a current account deficit country – and almost all American banks need wholesale funding. There is none of that since the Lehman/WaMu week – and there will not be substantial wholesale funding until the rules are clear. All banks will fail in that environment.

The faster we come out with a good process – one which has nationalisation as one (but not the only) possible outcome then banks will continue to fail. And ad-hoc decisions will be made to bail them out or confiscate them. And we will be no wiser. And no closer to a solution.

More here.

Comments

[Leslie W:]

Please contact President Obama, Senator Harry Reid, and Congresswoman Nancy Pelosi and tell them to have Obama sign an executive order to reinstate the uptick rule. If the SEC won’t do it, then Obama should. Reinstating the uptick rule will stop this ridiculous devaluing of stocks due to shorts creating a panic because they need to drive down the stock price so they can buy cheap shares to replace the money they borrowed at the higher price of the stock. ALSO, PLEASE REPORT CREEPS WHO WRITE POSTS THAT CREATE PANIC IN THE MARKETPLACE. IF WE HONEST FOLKS UNITE, WE’LL PUT A STOP TO THIS NONSENSE AND PUT SOME FAIRPLAY BACK INTO THE MARKETPLACE. Thank you!

President Obama’s website for change: change.gov

SEC complaints [phone]

White House switch board (leave message) [phone]

Senate Majority Leader Harry Reid [phone]

House Speaker Nancy Pelosi 202-225-0100

Feb 20 01:13 PM

[Leslie W:]

Please contact President Obama, Senator Harry Reid, and Congresswoman Nancy Pelosi and tell them to have Obama sign an executive order to reinstate the uptick rule. If the SEC won’t do it, then Obama should. Reinstating the uptick rule will stop this ridiculous devaluing of stocks due to shorts creating a panic because they need to drive down the stock price so they can buy cheap shares to replace the money they borrowed at the higher price of the stock. ALSO, PLEASE REPORT CREEPS WHO WRITE POSTS THAT CREATE PANIC IN THE MARKETPLACE. IF WE HONEST FOLKS UNITE, WE’LL PUT A STOP TO THIS NONSENSE AND PUT SOME FAIRPLAY BACK INTO THE MARKETPLACE. Thank you!

President Obama’s website for change: change.gov

SEC complaints [phone]

White House switch board (leave message) [phone]

Senate Majority Leader Harry Reid [phone]

House Speaker Nancy Pelosi 202-225-0100

Feb 20 01:15 PM

[mr freddo:]

Wells preferred stock yielding 8.5% at 25 par has dropped from 24 to 15 this week. People are bailing in droves due to fear that Wells has caught the derivatives disease from eating Wachovia and is about to be nationalized.

Banks may close very soon for a period of time. The shock of this will hit the American people like a hammer as they suddenly contemplate life with their credit cards.

That is why it is important to be prepared. All you can do is what you are capable of. Start with the basics. Go out to Safeway and buy food with long shelf lives. Beans, rice, canned vegetables. Try to have a least a month of food stored separately from your everyday pantry. Start doing this today.

Feb 20 01:56 PM

[desicon:]

If any of the major banks is nationalized then it will impact all the banks in terms of their ability to compete with a government agency. So nationalization of any bank will impact the overall banking industry.

Feb 20 02:09 PM

[James Wilson:]

GIVE US MORE MORE MORE BAD NEWS !!!!!!

Do not bother using your abilites with the investment community to locate the people who walked away with the cash from the bad paper.

Just hammer those who are here left to deal with their mess.

Is the retired head of Country Wide dividing up his take with G.W. ?

Feb 20 02:52 PM

[Independent...:]

Bankers are synonymous to Capitalists. The new trend is national capitalism. Look around, every system is going to look alike and compete with each other while watching each other closely.
If the political infrastructure support economy, we got tail wind, otherwise we'll create head wind. Facing Chinese system, we cannot afford to waste more time to hurt ourselves.
The shorters, some financial leaders, some unprofessional medias, your actions are not helping our economy, where is our good conscience? Why are we hurting the foundation of Capitalism? Short-term satisfaction is suicidal for the healthy well-being of national and international economies.
Cool down if you feel everything is so different, take responsibility if your action affects other people. Have a vision and enjoy life if you have positively contributed your bit to this World. Positively and constructively.
It's not that hard if everyone is working together to get this Flagship towards the same direction. We may have different opinions, but don't let that difference fume our anger and destroy our commonwealth. We are on this together. To create a new good economy is to every-one's best interest. Put our subjective difference aside, pull our collective force together. Take a deep breath, look back objectively, and start from fundamentals. We all have a dream. It's an American dream we all love after all!

Feb 20 03:17 PM

[Alan von Al...:]

Yes. Turn in the creeps who complain about government!
duckdiversified.blogsp...

Feb 20 10:41 PM

[NITRAM:]

Nationalizing any banks will help Obama with his socialistic plans. Americans have suffered through many down turns. However, our system always will survive. We now have the weakest administration and congress we have ever had. I wont go into the number of tax cheats or people like Barney Franks, we was attached at the hip with Freddy and Fanny. Yes our financial institutions need to be purged. The one man in our country who has experience with the banking crisis is Mr. Volker. But since Mr. Volker has never been accused of not paying his taxes or aiding Freddy or Fanny, Obama picks Summers. Obama has caused more disasters on one month than "W" did in four years.Why has the Treasury Secretary charged anyone with criminal activities. Oops I forgot, he is one of them.History has proven that the government cant spend us out of this problem. The Democrats like to say Roosevelt did it. That B.S. World war 11 did it. The war put people to work not Roosevelt. We must not let this racist socialistic President bring us down. People say he is not a racist. He attended Rev Wrights services for how many years. He and Michelle are racists. We have millions of the greatest business men and women in this country. Throw out the officers and boards of the corrupt banks and replace them with the people that can do the job. We must also start now to change our government. Throw out the Congress in 2010 and throw out the administration in 2012

Feb 21 08:48 AM

[tptrack:]

Yes, the uptick rule was established in 1934 to hellp main street investors. After protecting investors for about six decades. The previous administration SEC quietly removed this rule on 6 July 2007.

Perhaps someone can explain how removing this rule helps those investors on main street.

Feb 21 09:05 AM

[citypound:]

Idiot, Obama's not a socialist and ykour ignorance overwhelms my patience.


On Feb 21 08:48 AM NITRAM wrote:

> Nationalizing any banks will help Obama with his socialistic plans.
> Americans have suffered through many down turns. However, our system
> always will survive. We now have the weakest administration and congress
> we have ever had. I wont go into the number of tax cheats or people
> like Barney Franks, we was attached at the hip with Freddy and Fanny.
> Yes our financial institutions need to be purged. The one man in
> our country who has experience with the banking crisis is Mr. Volker.
> But since Mr. Volker has never been accused of not paying his taxes
> or aiding Freddy or Fanny, Obama picks Summers. Obama has caused
> more disasters on one month than "W" did in four years.Why has the
> Treasury Secretary charged anyone with criminal activities. Oops
> I forgot, he is one of them.History has proven that the government
> cant spend us out of this problem. The Democrats like to say Roosevelt
> did it. That B.S. World war 11 did it. The war put people to work
> not Roosevelt. We must not let this racist socialistic President
> bring us down. People say he is not a racist. He attended Rev Wrights
> services for how many years. He and Michelle are racists. We have
> millions of the greatest business men and women in this country.
> Throw out the officers and boards of the corrupt banks and replace
> them with the people that can do the job. We must also start now
> to change our government. Throw out the Congress in 2010 and throw
> out the administration in 2012

Feb 21 11:31 AM

[1234987:]

36 have been accused of spousal abuse

7 have been arrested for fraud

19 have been accused of writing bad checks

117 have directly or indirectly bankrupted at least 2 businesses

3 have done time for assault

71 repeat 71
cannot get a credit card due to bad credit

14 have been arrested on drug-related charges

8 have been arrested for shoplifting

21 currently are defendants in lawsuits,

and
84 have been arrested for drunk driving

in the last year



Can
you guess which organization this is?



NBA Or NFL
? Give up yet? .
Scroll down,

Neither,
it's the 435 members of the
United States Congress

The same group of Idiots that crank out
hundreds of new laws each year
designed to keep the rest of us in line.

Feb 21 01:19 PM

[User 287482:]

u gotta be kidding bush worst pres this country has ever had obama not alot better but he is trying wrong way but trying bush never had a clue


On Feb 21 08:48 AM NITRAM wrote:

> Nationalizing any banks will help Obama with his socialistic plans.
> Americans have suffered through many down turns. However, our system
> always will survive. We now have the weakest administration and congress
> we have ever had. I wont go into the number of tax cheats or people
> like Barney Franks, we was attached at the hip with Freddy and Fanny.
> Yes our financial institutions need to be purged. The one man in
> our country who has experience with the banking crisis is Mr. Volker.
> But since Mr. Volker has never been accused of not paying his taxes
> or aiding Freddy or Fanny, Obama picks Summers. Obama has caused
> more disasters on one month than "W" did in four years.Why has the
> Treasury Secretary charged anyone with criminal activities. Oops
> I forgot, he is one of them.History has proven that the government
> cant spend us out of this problem. The Democrats like to say Roosevelt
> did it. That B.S. World war 11 did it. The war put people to work
> not Roosevelt. We must not let this racist socialistic President
> bring us down. People say he is not a racist. He attended Rev Wrights
> services for how many years. He and Michelle are racists. We have
> millions of the greatest business men and women in this country.
> Throw out the officers and boards of the corrupt banks and replace
> them with the people that can do the job. We must also start now
> to change our government. Throw out the Congress in 2010 and throw
> out the administration in 2012

Feb 21 02:56 PM

[User 361776:]

Yes, much better if would have elected one of the Keating-Five


On Feb 21 08:48 AM NITRAM wrote:

> Nationalizing any banks will help Obama with his socialistic plans.
> Americans have suffered through many down turns. However, our system
> always will survive. We now have the weakest administration and congress
> we have ever had. I wont go into the number of tax cheats or people
> like Barney Franks, we was attached at the hip with Freddy and Fanny.
> Yes our financial institutions need to be purged. The one man in
> our country who has experience with the banking crisis is Mr. Volker.
> But since Mr. Volker has never been accused of not paying his taxes
> or aiding Freddy or Fanny, Obama picks Summers. Obama has caused
> more disasters on one month than "W" did in four years.Why has the
> Treasury Secretary charged anyone with criminal activities. Oops
> I forgot, he is one of them.History has proven that the government
> cant spend us out of this problem. The Democrats like to say Roosevelt
> did it. That B.S. World war 11 did it. The war put people to work
> not Roosevelt. We must not let this racist socialistic President
> bring us down. People say he is not a racist. He attended Rev Wrights
> services for how many years. He and Michelle are racists. We have
> millions of the greatest business men and women in this country.
> Throw out the officers and boards of the corrupt banks and replace
> them with the people that can do the job. We must also start now
> to change our government. Throw out the Congress in 2010 and throw
> out the administration in 2012

Feb 22 12:45 AM

[Mad Hedge F...:]

Wells Fargo Bank (WFC) has been in a free fall for the last two weeks, as investors bail out of the stock in fear of nationalization, or an Alt-A loan loss driven bankruptcy. The stock has vaporized 47% in three weeks, down to a new 12 year low. Veloceraptor like hedge funds have been major short sellers of the stock because it is one of the last banks with any meat still on the bone. Demand for out of the money puts is soaring. The stock is being dragged down further by big selling of bank and financial ETF’s, like the Financial Select Sector SPDR (XLF), which has WFC as its second largest holding at 8.74%.

Feb 22 12:02 PM

[monday1929:]

I am a short seller stongly in favor of banning naked shorting and in favor of re-instating the uptick rule. It was removed because in a MANIA people didn't think it, or ANY regulation,was needed anymore. Plenty of rules will be intituted during this Depression, and they will all be removed during the next Mania, probably long after we are all long-gone from this Earth.


On Feb 21 09:05 AM tptrack wrote:

> Yes, the uptick rule was established in 1934 to hellp main street
> investors. After protecting investors for about six decades. The
> previous administration SEC quietly removed this rule on 6 July 2007.
>
>
> Perhaps someone can explain how removing this rule helps those investors
> on main street.

Feb 25 08:45 AM