Comments on: Those dangerous yet well-capitalized banks http://blogs.reuters.com/felix-salmon/2009/12/02/those-dangerous-yet-well-capitalized-banks/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: brian http://blogs.reuters.com/felix-salmon/2009/12/02/those-dangerous-yet-well-capitalized-banks/comment-page-1/#comment-9577 Thu, 03 Dec 2009 17:55:00 +0000 http://blogs.reuters.com/felix-salmon/2009/12/02/those-dangerous-yet-well-capitalized-banks/#comment-9577 The comments by Dan here show that he either works for a bank or is some other form of corporate lapdog – who really believes that any of the banks are “well capitalized” when you factor in all of their real losses and liabilities. I wouldn’t be surprised if every bank in this country (except North Dakota) is insolvent.

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By: Thomas Barton, JD http://blogs.reuters.com/felix-salmon/2009/12/02/those-dangerous-yet-well-capitalized-banks/comment-page-1/#comment-9564 Thu, 03 Dec 2009 16:44:49 +0000 http://blogs.reuters.com/felix-salmon/2009/12/02/those-dangerous-yet-well-capitalized-banks/#comment-9564 Mr. Salmon, the last 3 paragraphs of your post seem to contradict your assertion that Camel ratings are for good reason kept highly confidential. Would not the free and easy access to such a thorough indication of the soundness or lack thereof in a Bank or whatever these entities choose to call themselves, would not this have helped prevent the building of the inverse pyramid described by that former Goldman Sachs director on CSPAn book tv this past weekend ? sorry poorly constructed question.

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By: Dan http://blogs.reuters.com/felix-salmon/2009/12/02/those-dangerous-yet-well-capitalized-banks/comment-page-1/#comment-9550 Thu, 03 Dec 2009 12:04:11 +0000 http://blogs.reuters.com/felix-salmon/2009/12/02/those-dangerous-yet-well-capitalized-banks/#comment-9550 High capital ratios are not only a safeguard against single bank risk but is still the best known safeguard against systemic risk and its a little misleading to not point this out when you speak of bank health.

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By: Cow http://blogs.reuters.com/felix-salmon/2009/12/02/those-dangerous-yet-well-capitalized-banks/comment-page-1/#comment-9546 Thu, 03 Dec 2009 04:59:21 +0000 http://blogs.reuters.com/felix-salmon/2009/12/02/those-dangerous-yet-well-capitalized-banks/#comment-9546 Preemptive Seizure? WaMu was never placed on the problem bank list AND was well capitalized. In fact, WMBfsb was over capitalized, with 20 billion in cash and it was still seized:”The net balance sheet of WMBfsb will be approximately $34 billion to $36 billion after Project Fillmore. The leverage ratio will decrease to 25% from 62%. A well-capitalized institution requires an 8% or higher leverage ratio.”http://www.portfolio.com/industry -news/banking-finance/2009/09/25/washing ton-mutual-downfall-anniversary/index2.h tmlBair told Fishman and Robinson that if WaMu was unable to sell the bank by the end of September it would be placed on the FDIC’s list of “troubled banks,” according to people familiar with the meeting.

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