DTD1969

Zombie Community Banks Still Lining Up for TARP Funds

The complex mosaic of capital-structures in the targeted realm of corporate borrowers that Cloutier speaks of (at minimum implicitly) certainly depends upon a given stasis of v-large banks. Thus they cannot be allowed to fail (at least in the random, chaos-theory based, process that he alludes to), with the outcome given an unacceptable, and possibly catastrophic, opportunity for "going to zero" - To say he K-N-O-W-S he can pull that one out of that quite-possible multivariate death spiral is delusion of manic proportions. Geeese !



On Jun 28 03:41 PM Mad Hedge Fund Trader wrote:

> they're not all in trouble. I had to listen to Midsouth Bank CEO
> Rusty Cloutier when he spoke on CNBC. His 24 branch bank, with a
> market cap of only $103 million, is based in Lafayette, LA, one of
> my old stomping grounds and home of the world’s greatest étouffée
> and shrimp gumbo. He says that “Unless we break up the big banks
> and get back to sound banking principles we are going to relive this
> over and over again….Free enterprise has to have the right to fail….Allan
> Greenspan and his administration have some problems they have to
> ‘fess up to.” With the current system of megabanks “they get the
> gain and we get the pain….I’m regulated now by 13 agencies of the
> US government and I don’t know that I need a 14th.” There’s no one
> who can read you a riot act like a Southern regional banker.