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Gene
climber
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Sep 17, 2008 - 06:02pm PT
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Will I have to sit there for months without a penny waiting for a check from the government if Wachovia collapses?
A day is now an eternity in the market.
Guess who is looking to swallow Morgan Stanley?
As Morgan Stanley’s share price came under renewed assault on Wednesday, the firm’s chief executive, John J. Mack, received a telephone call from Wachovia expressing interest in the Wall Street bank. Other banks have also expressed interest in Morgan Stanley, which is considering various options. The talks with Wachovia are preliminary and no deal may emerge.
http://www.nytimes.com/2008/09/18/business/18morgan.html?hp
Remember Greenspan’s “irrational exuberance” quote?
Are we reaching “irrational paranoia” in the market?
GM
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kev
climber
CA
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Sep 17, 2008 - 06:10pm PT
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yguns,
I can help you deal with your $ as well - same plan for you, remember I know how you love the Patron!
kev
Party in the Garage next week?
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TradIsGood
Chalkless climber
the Gunks end of the country
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Sep 17, 2008 - 06:15pm PT
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About the only time anybody really had to wait for checks to clear since FDIC was invented was after 9-11 when the airlines were grounded.
Check 21 fixed that problem.
Very few know about that, but it is why you now no longer get physical copies of your checks returned. :-)
As far as FDIC - jstan knows his stuff. If you don't have over $100K in savings your account is safe. If you do, the simplest thing is to move enough to another bank, but there are also ways (see FDIC site) to have more than $100K fully insured, but not in one account.
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Elcapinyoazz
Social climber
Redlands
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Sep 17, 2008 - 06:20pm PT
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And the beat goes on...from NYT:
"Washington Mutual, the struggling savings and loan, has been working on several efforts to save itself, including a potential sale, people briefed on the matter said Wednesday. Goldman Sachs, which Washington Mutual has hired, started the process several days ago, these people said. Among the potential bidders that Goldman has talked to are Wells Fargo, JPMorgan Chase and HSBC. But no buyers may materialize. That could force the government to place Washington Mutual into conservatorship, like IndyMac, or find a bridge-bank solution, which was extended to thrifts in the new housing regulations."
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happiegrrrl
Trad climber
New York, NY
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Sep 17, 2008 - 06:23pm PT
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...but it's important to remember - we're not in a recession!
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TradIsGood
Chalkless climber
the Gunks end of the country
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Sep 17, 2008 - 06:27pm PT
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This article on LIBOR won't mean much to most on this forum, today.
Or the fact that the US Treasury announced special bill auctions today, to shore up the FED...
It is starting to look pretty crazy. If you have a LIBOR indexed ARM pay attention! Refinance into fixed if you can and can't afford to just pay off your mortgage at the end of the fixed rate period.
Happie edit.
It will likely turn out that we are in a recession. But those are announced afterwards, not at the start.
We are certainly in a housing price depression - the underlying cause of all of the problems.
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TradIsGood
Chalkless climber
the Gunks end of the country
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Sep 17, 2008 - 06:42pm PT
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Fortunately, the official cost of living just went down!
:-)
Anybody want to bet on when oil will hit $50?
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JOEY.F
Social climber
sebastopol
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Sep 17, 2008 - 06:44pm PT
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Wachovia, (or, F#@K ovaya, as I call them) bites.
Have my mortgage w/them and my recent loan modification
was more painful than a root canal.
They have dropped their pre-pay penalty on mortgages,
They WANT OUT!
I think a credit union asap would be best for a few grand,
temporarily, then go from there.
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jstan
climber
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Sep 17, 2008 - 09:16pm PT
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Good grief so much here!
A happy note. The answer is finally forming. I was just over at Trader Joe's. I found a brand new moped double parked on my bicycle!!!!!!
“They have dropped their pre-pay penalty on mortgages,”
Things like this were one result of some recent serious negotiations between banks and the governmental authorities.
“Fortunately, the official cost of living just went down!”
I am not betting on it longer term. You look at the cost of gasoline and plot it against elections. The plot says gasoline will be somewhere around $3.50 a gallon or even lower by early November. Look at a plot of the exchange rate of the Euro/Dollar and you smell RAT. The fundamentals have not changed and the Fed no longer reports currency support expenditures.
“It is starting to look pretty crazy.”
The Fannie/Freddy thing was quoted, IMO at $200 Billion because that is what comes due Sept.30. What will it turn out to be longer term? It is looking pretty crazy – agreed.
“And the beat goes on...from NYT”
This is definitely getting worrisome, IMO. We need more Lehmans or the bottom will be out, I suspect.
“Check 21 fixed that problem”
Not sure of the reference but I believe a copy of your statement showing the withdrawal and a copy of the carbon below your check is legal proof.
SAVE YOUR RECORDS
Don't assume Jstan knows his stuff! Just make absolutely certain you are doing it right when setting up your accounts. YOU GOT TO!
“another vote for beans and ammo”
I sincerely hope the ammo will not be necessary. Sincerely. That would indicate our beloved administration has not contributed at all to our security. Osama would then be laughing his ass off. We don't want that. Osama bin Laden dying of laughter.
Beans? Definitely. Build yourself a garden and learn how to do it. Don’t expect to become self sufficient. You have no idea the fixed costs required to build a farm. Working 24 hours a day won’t do it. The bank will own you in five years.
“Fidelity - I like them.”
So far, me too. Fidelity has just released a news flash that they will absorb the cost of their failed Freddie bet and will hold their MMA at $1. They escaped another percent hit when the taxpayer picked up the AIG liability. The MMA, at least to an unpracticed eye, looks well diversified.
Today at the local store front I asked if they actually separate accounts as required.(Someone goes to jail if they sneak securities out of a customer’s account.) Believe it or not as you will, she said their system sends a warning flag if an employee’s entry does not meet this rule absent a legally documented message from the customer. Does not prove anything, except that they want us to believe they are trying.
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JOEY.F
Social climber
sebastopol
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Sep 18, 2008 - 12:12am PT
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“They have dropped their pre-pay penalty on mortgages,”
Things like this were one result of some recent serious negotiations between banks and the governmental authorities.
Really jstan?
well, for what ever reason, I'm glad.
I'm tied to the CODI index, which looks like it might be in my favor for a couple of years.
On another note, might be shopping at TJ's myself and get to Facelift after all!
Big moon rising right about now...
gottagetoutofthismoneybizworryshee(ekatsteelfromthebest)
joe
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Zetedog
Trad climber
PGH, PA
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Sep 18, 2008 - 02:10pm PT
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Gene - Made out brilliantly through the end of 2006. Once AAA ABS-HE started trading @ spreads to subLibor in OCT/NOV/Dec, we liquidated most of it through the end of that year, ended up with less than 25% in ABS & CDO's, rolled the rest in sub-60day A2/P2 CP (low investment grade).
I left that firm after bonus (paid in march), and am now trading derivatives for another shop. Talking to those that took over my place - they took a bath on marks, but haven't lost a dime in either principal or expected coupons (some of them have extended, allowing them to collect more coupons as pre-pays have slowed).
Those things you have to look at deal by deal, which is not what a lot of people were doing at the time, plus we/they got lucky on the ones kept. I know they are worried about a couple of the BBB tranches owned, but have minimal exposure to losses compared to the size of their funds.
Managing that fund is a lot easier then what Fattrad has to do - Having the paper marked down in price creates bad Mark-to-Market returns, but, if you don't have to sell it and the principal is repaid and you can avoid tapping out, you'll be rewarded after feeling some pain.
Guys like Fattrad, and any bank or hedge fund that was using the stuff as collateral or capital reserves have bigger problems- their paper losses trigger actual actions in which they have to realize that loss.
ToddE.
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Ed Hartouni
Trad climber
Livermore, CA
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Sep 18, 2008 - 04:43pm PT
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if bank failures start to be a problem, there will be no one unaffected... including the Federal Gov't, and not just our gov't...
so chill out a bit, it's a rocky ride ahead, no use getting overly upset, ain't no one gonna escape the splatter...
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kev
climber
CA
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Sep 26, 2008 - 12:15pm PT
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Yo drc,
The Lobotomy bock is in the fridge...Bring the portaledge Sunday...
kev
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jstan
climber
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Oct 12, 2008 - 10:37pm PT
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The FDIC has released a modification of its rules as to the naming of trust accounts. Without attempting to describe this change, I post Bloomberg's report. The actual release can be obtained from the FDIC site.
http://www.bloomberg.com/apps/news?pid=20601213&sid=aALRcfntKEME&refer=home
FDIC Easing of Trust Rules Increases Deposit Coverage (Update1)
By Jeff Plungis
Oct. 10 (Bloomberg) -- New rules from the Federal Deposit Insurance Corp. make it easier to set up trust accounts, extending potentially millions of dollars of protection for consumers at a single bank.
According to a letter sent to banks Oct. 8 describing the revised rules, the FDIC dropped a requirement that beneficiaries in revocable trusts be immediate family members. The accounts can now name people who aren't relatives. Charities and nonprofit organizations are also eligible. The names of the beneficiaries must be listed in the bank's records, the FDIC said.
The action comes as Congress increased the basic level of deposit insurance for one year from $100,000 to $250,000 as part of the U.S. financial rescue package. Deposit insurance limits apply to all of an individual's accounts at a single institution. Joint accounts, retirement accounts, and trust accounts are insured separately.
``This would relieve a lot of people's insecurities about where to stash their money,'' said Cathy Pareto, a fee-only financial planner in Coral Gables, Florida.
``It's a win, win for consumers and banks.''
The FDIC approved the change based on confusion during recent bank failures such as California-based lender IndyMac Bancorp Inc., not in connection with the new, higher $250,000 basic limit on deposit insurance, agency spokesman David Barr said. There was a lot of misunderstanding, even among bankers, about why relatives such as nieces and nephews, or relationship partners, weren't covered under the old rules.
No Limit
There's no limit to the number of beneficiaries or the amount insured in the trusts, Barr said. The main factor limiting coverage is ``the number of people you know and the amount of money you have,'' he said.
With the basic protection raised to $250,000, a married couple can easily insure $1 million at a single bank -- with separate accounts in each name and a joint account insured up to $500,000.
The revocable trust rules would allow the same couple with three children to insure up to $2 million in addition, according to an example on the FDIC Web site. The husband and wife's separate accounts are insured up to $250,000 each. A joint account with the three children as payable-on-death beneficiaries is covered up to $1.5 million -- $250,000 for each child's interest in both parents' estates.
People coming into Great Florida Bank in Coral Gables are asking about FDIC protection and are pleased with the changes, said Rudy Lleonart, the bank's senior vice president and director of retail banking. With all the financial turmoil, customers are ``getting back to basics,'' he said.
``Because of human nature and what they're seeing going on in the market, people are trying to cover themselves,'' Lleonart said. ``People are looking for more conservative investments.''
To contact the reporter on this story: Jeff Plungis in Washington at jplungis@bloomberg.net.
Last Updated: October 10, 2008 17:11 EDT
END OF REPORT
I will repeat an earlier statement of mine.
Be very sure you have it right!
Also be sure you know what will result from having formed the trust.
Once dead, you will have to live with the result.
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