Comments on: Banks still need bigger cushions (Q2 TCE update)

By: Jim

Jim — Thu, 30 Jul 2009 13:25:02 +0000

Rolfe is right. Citi has already moved to shore up their TCE. Their public share exchange last week yielded over 60B bringing TCE to 100B and their current ration to 5.5% (over 9% tier 1 common). Will other banks follow suit? Will they be able?

By: Rolfe Winkler

Rolfe Winkler — Wed, 29 Jul 2009 16:41:56 +0000

Indeed Joe. Indeed.

By: Joe

Joe — Wed, 29 Jul 2009 16:32:53 +0000

“If banks learn nothing else from the financial crisis, it’s that they should err on the side of prudence, carrying substantially more capital than appears necessary.”

why should they? They have been shown they will not be allowed to fail , so why not take on as much risk as possible?

By: georgetown

georgetown — Wed, 29 Jul 2009 15:11:29 +0000

1) Goldman is not a bank (anyone you know ever get a loan from them?) 2) They should never have been given BHC status 3) They will continue to be reckless with other peoples money until profit in doing so is removed 4) for a so-called bastion of capitalism they have received more bail-out $$ going back to LTC and beyond then any other institution 5) nice to have friends in high places – like the cabinet

By: A. Fisher

A. Fisher — Wed, 29 Jul 2009 14:36:13 +0000

True free market economics will provide the proper incentive that the financial institutions need to self regulate. Proper incentive to self regulate is the key. As painful as it may be we need to go back to a free market system. To delay will only increase the pain at some point down the road.

By: Newspeak

Newspeak — Wed, 29 Jul 2009 14:27:34 +0000

Uh, yeah. Banks need to be more prudent. That’s a good idea. The current system allows them to live off the public like a leach – only taking; never giving; spreading disease.

They got their bailouts (our tax money) – and they’re still charging over 20% on credit cards after a late payment. They get their bonuses whether business is good or bad. They didn’t see this 1,500 car pile-up? Same thing with AIG – didn’t ya hear about their new round of $235 million in bonuses? Google: “AIG $235″

This is what the End of America looks like.

But do you want to know what I really think?

This is more like the Federal Reserve trying to crash state budgets that are heavily based on property taxes – so they can extort what little is left of their sovereignty in exchange for emergency funds that their constituents originally paid as taxes!! Centralized planning from the Feds – and they said if only they had had more power to seize companies and their assets they could have averted all this. Sounds pretty Faustian.

By: rayman in CA

rayman in CA — Tue, 28 Jul 2009 21:42:14 +0000

The banks are trying to get into the Goldman game again. They are buying CDOs at distressed prices, praying they don’t roll a ” 7-out ” !!

Forget about loans from now on.Beaten up real estate is the new game for speculation once again. Don’t have to touch a deed either. Oil speculation is passe’ due to that pesky demand problem. CFTC is sniffing around it anyway.

By: sangellone

sangellone — Tue, 28 Jul 2009 16:52:41 +0000

But the USG has declared none of the gang of 19 will be allowed to fail (and besides their risks are all hedged) so why not gear up and increase earnings?