dmarc117 Posted August 22, 2008 Share Posted August 22, 2008 (edited) Bloomberg.com reports Midwest Bank Holdings (MBHI) Chief Investment Officer Don Wiest is wagering U.S. Treasury Secretary Henry Paulson will rescue him from a failing $67 mln stake in Fannie Mae (FNM) and Freddie Mac (FRE). Midwest and banks from Sovereign Bancorp (SOV) to Frontier Financial (FTBK), own preferred shares in the beleaguered mortgage-finance companies that have lost more than half their $35 billion value since June 30. Concern that Paulson may step in with a rescue plan that would wipe them out along with common stock investors has sent the securities tumbling. "I guess we are betting on Paulson,'' Wiest said. "We have to believe that his plan carries the day somehow.'' Midwest has $67.5 mln, or as much as 23% of its risk-weighted assets tied up in Fannie and Freddie. Small, regional banks may have the most to lose from the stumbles in Fannie and Freddie, and Paulson may risk bank failures unless he protects preferred stockholders, said Ira Jersey, an interest-rate strategist at Credit Suisse. The impact on the preferred holders "may be an important driver'' in Paulson's decisions, Jersey said. "Any wipeout of the preferreds could have implications for the capital of the greater financial system and these regional banks that might have reasonably precarious capital situations,'' Jersey said. "You don't want to make that worse if you're the government.'' CATY has $30 mln in Fannie and Freddie securities. SOV has a $632 mln stake while Frontier owns $5 mln in FRE and FNM securities. Edited August 22, 2008 by dmarc117 Quote Link to comment Share on other sites More sharing options...
cre8tiff Posted August 22, 2008 Share Posted August 22, 2008 1) Despite our differences in political views, thanks for this type of watchdog stuff. I appreciate it. 2) How can you check if your bank would be affected? Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted August 22, 2008 Author Share Posted August 22, 2008 (edited) 1) Despite our differences in political views, thanks for this type of watchdog stuff. I appreciate it. 2) How can you check if your bank would be affected? no prob. i would say you can call your bank, but they probably will lie or truly have no idea to the extent of their risks in this mess. not sure if there is a way to get this info. to be safe, make sure all your accounts are fdic insured. one other crude method is if your bank is publicly traded, keep an eye on the stock. someone usually knows and the stock action will be a guide. Edited August 22, 2008 by dmarc117 Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted August 22, 2008 Share Posted August 22, 2008 I would assume Bank of America is big enough to be immune from all this stuff... Quote Link to comment Share on other sites More sharing options...
tazinib1 Posted August 22, 2008 Share Posted August 22, 2008 I would assume Bank of America is big enough to be immune from all this stuff... If there not, I"m sure they will dream up new charges to recap any loss. BoA=Worst bank EVER Quote Link to comment Share on other sites More sharing options...
geeteebee Posted August 22, 2008 Share Posted August 22, 2008 You can check if your bank is FDIC insured here. Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted August 22, 2008 Share Posted August 22, 2008 If there not, I"m sure they will dream up new charges to recap any loss. BoA=Worst bank EVER I like it. Especially their free online bill pay. Quote Link to comment Share on other sites More sharing options...
PSULions Posted August 26, 2008 Share Posted August 26, 2008 If there not, I"m sure they will dream up new charges to recap any loss. BoA=Worst bank EVER I have worked there for 12.5 years and I think they are a pretty good bank and an excellent employer. The online banking is the best in the industry and have been working on new applications with Mobile Banking to check balances, transfer money, etc. in your accounts using your phone. Sorry, you don't like them, but Bank of America is definitely NOT the worst bank ever. Quote Link to comment Share on other sites More sharing options...
evil_gop_liars Posted August 26, 2008 Share Posted August 26, 2008 What if your bank is NCUA insured? Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted August 26, 2008 Share Posted August 26, 2008 Now, please! Now, wait a minute! Listen to me! Now, you're thinking about a bank all wrong. Your money's not here! Your money's in people's houses! In the Kennedy house, and the MacClaren house, and in your house, and a hundred others! Quote Link to comment Share on other sites More sharing options...
Big John Posted August 26, 2008 Share Posted August 26, 2008 What if your bank is NCUA insured? Then was was called a bank is really a credit union. Quote Link to comment Share on other sites More sharing options...
PSULions Posted August 26, 2008 Share Posted August 26, 2008 Now, please! Now, wait a minute! Listen to me! Now, you're thinking about a bank all wrong. Your money's not here! Your money's in people's houses! In the Kennedy house, and the MacClaren house, and in your house, and a hundred others! Love the George Bailey take of this thread.... Gotta save the good ole' "Bailey Building and Loan". I love that movie! Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted August 26, 2008 Author Share Posted August 26, 2008 What if your bank is NCUA insured? from googling, looks like it is the equivalent of fdic insurance for regular banks. just make sure u read the fine print. i believe each ss# is insured up to 100k for regular accounts and 250k for retirement accounts. Quote Link to comment Share on other sites More sharing options...
BeeR Posted August 26, 2008 Share Posted August 26, 2008 I have worked there for 12.5 years and I think they are a pretty good bank and an excellent employer. The online banking is the best in the industry [cap one]Nonsense.[/cap one] Quote Link to comment Share on other sites More sharing options...
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