Because somebody hurt their feelings, they decided to punish the country? I don’t believe they had the votes. They are covering up the fact that they don’t have the votes.
Clearly we are in a high-risk premium mode, just as we were in March. Lack of investor confidence, exacerbated by quarter-end concerns, has tilted the repo markets in favor of the collateral owners.
—Piyush Goyal, Barclays
Firm Writedown & Loss Capital Raised
Citigroup Inc.* 60.8 71.1
Wachovia Corporation* 52.7 11.0
Merrill Lynch & Co. 52.2 29.9
Washington Mutual Inc. 45.6 12.1
UBS AG 44.2 28.0
HSBC Holdings Plc 27.4 5.1
Bank of America Corp. 21.2 20.7
JPMorgan Chase & Co. 18.8 19.7
Morgan Stanley* 15.7 14.6
IKB Deutsche Industriebank AG 14.8 12.2
Royal Bank of Scotland Group Plc 14.1 23.1
Lehman Brothers Holdings Inc. 13.8 13.9
Credit Suisse Group AG 10.4 3.0
Deutsche Bank AG 10.4 6.1
Wells Fargo & Company 10.0 5.8
Credit Agricole S.A. 8.8 8.5
Barclays Plc 7.6 17.9
Canadian Imperial Bank of Commerce 7.2 2.8
Fortis* 7.1 23.1
Bayerische Landesbank 6.9 0.0
HBOS Plc 6.8 7.2
ING Groep N.V. 6.7 4.6
Societe Generale 6.6 9.4
Mizuho Financial Group Inc. 6.1 0.0
National City Corp. 5.4 8.9
Natixis 5.3 11.8
Indymac Bancorp Inc 4.9 0.0
Goldman Sachs Group Inc. 4.9 10.6
Lloyds TSB Group Plc 4.7 4.8
Landesbank Baden-Wurttemberg 4.7 0.0
WestLB AG 4.6 7.2
Dresdner Bank AG 3.9 0.0
BNP Paribas 3.9 0.0
E*TRADE Financial Corp. 3.6 2.4
HSH Nordbank AG 3.5 1.8
Rabobank 3.5 0.0
Nomura Holdings Inc. 3.4 1.2
Bear Stearns Companies Inc. 3.2 0.0
Bank of China Ltd 3.1 0.0
DZ Bank AG 2.6 0.0
Landesbank Sachsen AG 2.5 0.0
UniCredit SpA 2.5 0.0
Commerzbank AG 2.3 0.0
ABN AMRO Holding NV 2.2 0.0
Royal Bank of Canada 2.2 0.0
Fifth Third Bancorp 1.9 2.6
Dexia SA 1.6 0.0
Mitsubishi UFJ Financial Group 1.6 1.6
Bank Hapoalim B.M. 1.5 2.5
Marshall & Ilsley Corp. 1.4 0.0
Alliance & Leicester Plc 1.3 0.0
U.S. Bancorp 1.3 0.0
Bank of Montreal 1.2 0.0
KeyCorp 1.2 1.6
Groupe Caisse d’Epargne 1.2 0.0
Hypo Real Estate Holding AG* 1.1 0.0
Sovereign Bancorp Inc. 1.0 1.9
Gulf International Bank 1.0 1.0
Sumitomo Mitsui Financial Group 1.0 4.9
Sumitomo Trust and Banking Co. 0.8 1.0
National Bank of Canada 0.7 1.0
DBS Group Holdings Limited 0.2 1.1
Other European Banks* 9.1 2.9
(not listed above)
Other Asian Banks 5.5 8.9
(not listed above)
Other US Banks 2.9 4.8
(not listed above)
Other Canadian Banks 0.4 0.0
(not listed above)
________ ________
TOTAL 590.8 434.2
Today’s blast of term liquidity will settle the funding markets down, and allow trust to slowly be restored between borrowers and lenders. On the other hand, “the Fed’s balance sheet is about to explode.
—Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York.
These steps are being undertaken to mitigate pressures evident in the term funding markets both in the United States and abroad
—The Fed
]
A wide swath of investors are going to be harmed by this, but the FDIC fund is going to come out of this unscathed. That’s the happy part.
—Chip MacDonald, a partner in the capital markets group at Jones day in Atlanta
WaMu’s collapse, the largest U.S. bank failure, came at a “zero cost” to the insurance fund for deposits, said FDIC Chairman Sheila Bair in an interview with Bloomberg Television. A “clean, seamless transfer” of the Seattle-based lender’s banking unit helped shield the $45 billion fund, Bair said.
The plan is a trickle-down approach from banks to Main Street, but if you reduce the flood of foreclosures and defaults, it will make mortgage-backed securities worth more.
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