..

US Banks to Fail: Prediction Market Lists Odds

Written by:
C Costigan
Published on:
Jul/15/2008
National City Bank

Online gambling site Intrade had posted odds for a handful of US bank failure possibilities Tuesday, with very few bidders thus far.

Thus far gamblers believe that there are two US banks particularly vulnerable as of Tuesday: National City (bid of 4.0 at press time) and Washington Mutual (bid of 5.0 at press time).

National City (NYSE: NCC) halted trading midday to address rumors that it was facing a run on the bank.

"National City is experiencing no unusual depositor or creditor activity," the troubled Cleveland bank said in a statement issued mid-day. "As of the close of Friday's business, the bank maintained more than $12 billion of excess short-term liquidity. Further, as a result of our recent $7 billion capital raise, National City maintains one of the highest Tier I regulatory capital ratios among large banks."

That did little to quell investor concerns. National City's shares were down almost 28 percent to $3.20 at the end of New York trading. The shares had traded as low as $2.99 earlier in the day.

Washington Mutual (NYSE: WM) skidded almost 35 percent to $3.23 per share. The Seattle bank issued a statement after the market closed to tout its financial strength.

"The company significantly exceeds all regulatory 'well-capitalized' minimums for depository institutions," the bank said. "In addition, WaMu has current excess liquidity of more than $40 billion and a national franchise with approximately $150 billion in retail deposits."

Other banks listed on the Intrade website include: First Horizon, First Fed, BankUnited, Downey, Oriental, Regions Financial and Zions Bankcorp. No bids were placed at press time, however.

Notably absent from the list was Wachovia, which took another hit on Wall Street Tuesday with news that the bank "faces a bleak outlook".

Wachovia Corp.'s stock shook off earlier losses, recovering from an early-morning shock when an influential analyst at Oppenheimer & Co. downgraded the shares and said that shareholders face a "bleak" outlook.

The bank's stock had tumbled 15% when the market opened, but posted a modest gain of 1% by midmorning and reached an intraday high of $10.23. It traded at $9.48 at last check.

Shares of the Charlotte, N.C.-based company -- one of the largest banks in the United States -- have fallen more than 80% from this time a year ago.

Concerns over bank failures grew following last week's abrupt closure of IndyMac, once among the largest mortgage banks. Those with deposits up to $100,000 were guaranteed all of their funds. Anything over (uninsured) were to get 50 percent and maybe more depending on monies derived from any sale of the bank.
There is $6.84 Trillion in bank deposits of which $2.60 Trillion is uninsured across the entire banking sector.
Total cash on hand at banks is $273.7 Billion.

"If uninsured depositors start asking for cash on the barrelhead, things can get mighty ugly mighty fast," Mike "Mish" Shedlock of Global Economic Analysis writes.

----

Christopher Costigan, Gambling911.com Publisher CCostigan@CostiganMedia.com

Originally published July 15, 2008 1:50 pm EST

 

Business/Financial News

The War on Bitcoin: Arch Enemies Join Forces

The War on Bitcoin: Arch Enemies Join Forces

It appears the five year Civil War within the cryptocurrency space may finally be coming to an end, at least among some bitter foes, all focusing their attention on what they perceive to be the ultimate enemy, Bitcoin SV.

BuyBSV.com Now Offers Bank Transfers in US & Canadian Dollars

BuyBSV.com Now Offers Bank Transfers in US & Canadian Dollars

BuyBSV.com, powered by Coinify, are delighted to announce that ALL traders can now complete bank transfers to buy Bitcoin SV in USD, CAD & DKK in addition to the Euro and the British pound.

Why Online Gambling Companies Need to Incorporate Bitcoin SV

The gambling industry has a lot to gain by adopting Bitcoin SV, and they can learn how at CoinGeek Live. Jimmy Nguyen talks about what you can expect to see with CoinGeek's Rebecca Liggero.

CoinGeek Live Presents: Cashless Casinos: How Bitcoin Technology Offers A Better & Safer Gaming Experience

Live from studios in both New York and London experts from the iGaming industry gather to talk about the way forward for the casinos across the world. The conference will, naturally, be virtual but it is far more than just ‘Zoom-heads’ on a black background. This panel will not only offer interaction and questions form delegates but also be broadcast live from The Manhattan Studio (NYC) and Kennington Studios (London) from 10:15am EST on Friday, October 2nd. 

No Retail Crypto-Wide Bull Run Likely for Rest of 2020

No Retail Crypto-Wide Bull Run Likely for Rest of 2020

Joel Birch, co-founder of automated crypto investing platform Stacked, says crypto prices may still be weighed down by a difficult global economic atmosphere.  His remarks come as the Covid-19 pandemic continues its stranglehold across the globe with a second surge now occurring in Europe.

Syndicate