7.7 Trillion

The government is "more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled," the ratings agency said.

Our government is willing to let one of these banks fail? Do they want to declare martial law?

I'm sure the lawsuit the Fed has against the banks, is not helping them get stable. I guess they are still pissed the banks didn't lend out that 125 billion the Feds gave them. In hopes they would.

Edit: Edit to thread name.






Edited by impulse418 - 30 November 2011 at 11:30am

I'll use this thread to discuss the fact that I'm probably going to switch to a local credit union here soon, for the following reasons: 

impulse418 wrote: I don't think the government wants martial law, but to let a big bank fall. What do you think would happen. Everybody will just say "well shucks that isn't good"

Well, I'm not far enough into my degree to fully understand the consequences of letting a bank fail, so I'm not going to lie and say that I'm 100% certain of what would happen.

But banks can fail even with bailouts with the right management. It's happened in the past, and with little impact to the American economy. In fact, it's altogether possible that the bailouts did more damage than the bank failure.

Mass riots and martial law are a very far fetched scenario in this country, mostly because they haven't happened in recent memory. I believe the last example of federally declared martial law was in Hawaii post Pearl Harbor, and we've been through quite a bit since then.

A far as your Chinese option, I'm not sure if you're being sarcastic so I'm going to bypass that to this statement-

impulse418 wrote: We cannot let these banks fail. That is not an option.

You're right, letting all of them fail isn't an option. But I can imagine letting a financial institution fail is definitely a viable option in some scenario. Again, I'm not pretending to be an expert or even full educated in this subject, I'm only speaking in hypothetical. If I had time to research this a little further with an idea of the specific consequences of specific banks coming to a specific demise, I'd be able to contribute a little more to the topic at hand.

Mostly, I just disagree on the front that a bank failing would mean a state of martial law. I

GroupB wrote: Personally, I am in favor of martial law.  I would much rather deploy to Florida than Afghanistan.

agentwhale007 wrote: I'll use this thread to discuss the fact that I'm probably going to switch to a local credit union here soon, for the following reasons:  Logistics. I switched from Wachovia, which I was happy with, to Chase when I moved to Ohio. Because Chase is from Cincinnati, they are everywhere up there, and the closest Wachovia to my now-former house was 50 minutes away. Now, I move back to Florida, and the closest Chase ATM is almost an hour and a half away, in either Jacksonville or back in my home town (Ironically it is less than 1.5 miles from my old house back home). The two credit unions here in town, though, are everywhere. Fees. If Chase is really going to start charging a nation-wide fee for debit card usage I'll jump ship. The credit unions don't have anywhere near those fees.  Localization. At least I know the credit union is based in helping out communities.  The downside? All my direct deposits and withdrawals are set up with my existing Chase account. It's going to be a royal pain in the butthole to undo all of those and set them up on a new account.

Credit unions are great.  I used Space Coast Credit Union when I was in FL and am now with State Employees in NC.  I don't see the motivation for NOT using a credit union.

The FDIC is pretty good about closing failing banks on Friday and having them reopen on Monday morning, and my money is insured.

I'm not too worried about this, frankly.  If I were a stockholder, I might feel differently.

http://www.nypost.com/p/news/business/with_frantic_sales_talks_failing_tiO1ERdMp7SN1PnC7UC54N

http://blogs.wsj.com/deals/2011/10/31/mf-global-likely-among-the-10-biggest-bankruptcies-ever/

Figured there was no need for a new thread.

impulse418 wrote: http://dealbook.nytimes.com/2011/10/31/regulators-investigating-mf-global/

Shocking, desperate people do stupid things.

http://beta.finance.yahoo.com/news/uncertainty-over-italys-future-slams-105718047.html

congrats. You and your buddy FE are the two distingished members of this board to have 2 hat tricks on the same page.