Another Bank Run Underway

auric · 29 September 2008

mayk from their web site:
While interest payments and the face value payment at maturity are guaranteed by the Commonwealth Government, it is possible for capital gains or losses to be made if Bonds are sold prior to maturity.

if they default where are all in de.p sh.t

Jack5 · 1 October 2008

disarray said:
my old man closed his $150k bankwest account today as well and moved to commonwealth. interesting times.

Bankwest has a very high credit rating, A+, which means your old man's money was as safe as it was in any other bank of the big 4, at least for the next couple of years. At the moment Bankwest offers the highest interest rate , so it is actually the best chance to make some easy money with nearly zero risk.

wayneL · 1 October 2008

Jack5 said:
nearly zero risk.

LOL

Jack5 · 1 October 2008

wayneL said:
LOL

OK...so you think the risk pretty high? Why?

white_goodman · 1 October 2008

Jack5 said:
OK...so you think the risk pretty high? Why?

well if everyones panics like he did wont they have a problem

rub92me · 1 October 2008

Jack5 said:
OK...so you think the risk pretty high? Why?

The risk doesn't have to be pretty high to be far from zero. Checkout the credit ratings of a random sample of 5 banks just before they went over the cliff. All it needs is a sniff of blood and there is a piranha fest these days.

disarray · 1 October 2008

credit ratings don't mean anything anymore, and bankwest are being offloaded by hbos so there is uncertainty. when things settle down the money can always be shifted back, everyone has their own personal level of defensive paranoia so whatever works.

theres plenty of 50's somethings who were (note: were) planning to retire on their superannuation soon but not any more, it just goes to show you can't trust anyone or anything, and your best bet for survival is to control your own financial destiny.

wayneL · 1 October 2008

Jack5 said:
OK...so you think the risk pretty high? Why?

Echoing rub92me's comments, I don't think the risks are "high".

But bank deposits outside of a few very conservative institutions are a hell of a lot more risky than appreciated.

Jack5 · 2 October 2008

mmm....Thanks for all your opinions which make good sense, but I am confident that Bankwest is going to be safe. The key question mark here would be "whether HBOS will collapse?" If it does, Bankwest will sink with it. However, HBOS is just too big to collapse, and under current circumstances, HBOS will definitely be swallowed by Lloyds TSB, which means Bankwest will be backed up by one of the largest bank corporations in the world.
Futhermore, Bankwest is tightly regulated by APRA. It will not make sense that it will be in trouble anytime soon.
The only thing that I don't quite understand is what sort of impact it would be if it was sold to another financial institution. Will it make the deposits more secure or worse?

cuttlefish · 2 October 2008

Jack5 said:
mmm....Thanks for all your opinions which make good sense, but I am confident that Bankwest is going to be safe. The key question mark here would be "whether HBOS will collapse?" If it does, Bankwest will sink with it. However, HBOS is just too big to collapse, and under current circumstances, HBOS will definitely be swallowed by Lloyds TSB, which means Bankwest will be backed up by one of the largest bank corporations in the world.
Futhermore, Bankwest is tightly regulated by APRA. It will not make sense that it will be in trouble anytime soon.
The only thing that I don't quite understand is what sort of impact it would be if it was sold to another financial institution. Will it make the deposits more secure or worse?

But for the sake of some basis points of income, is it worth the risk? Who knows what the government would do if a bank got in trouble, but at the moment it is under no obligation to do anything.

What I do think is that if Bankwest failed and there was no bailout - there would be a newspaper headline or two and some ACA and Today Tonight stories about the poor people that lost all their money and a shot of an old couple that lost their entire retirement savings etc. and the swag of businesses that suffered or went broke etc. as well as the obligatory debate on whether the government should have stepped in or not etc.

But if CBA, Westpac, ANZ or NAB went bust and the government decided not to enact a bailout there would be rioting in the streets and all hell would break loose.

There is safety in numbers in being in a 'big four' bank account (if its an investment product or 'special account' offered by the bank it may not be a bank account and it may not even be an asset of the bank but of a related or subsiduary institution so fine print is important - as Opes clients found out). Out of the our banks I'd probably favour CBA or WBC over ANZ or NAB.

If there were ever a situation where the government had to choose between a bankwest and one of the majors it would favour the majors.

(all that being said I think the government would work to enact some sort of bailout if a bank did go bankrupt - at least for the first one or two that went under anyway ... not so sure about credit unions and building societies and these have gone broke in the past - I think it was Pyramid that went broke in the late 80's or early 90's).

disarray · 2 October 2008

cuttlefish said:
What I do think is that if Bankwest failed and there was no bailout - there would be a newspaper headline or two and some ACA and Today Tonight stories about the poor people that lost all their money ...

But if CBA, Westpac, ANZ or NAB went bust and the government decided not to enact a bailout there would be rioting in the streets and all hell would break loose.

quoted for truth. while following the herd isn't always a good idea, there is safety to be had in numbers.

georgey · 11 October 2008

Interesting topic. What are the thoughts on BEN/ADB?
Leveraged Equities are backed by ADB so wonder how secure
funds are with them also and whether the merger with BEN would
be beneficial at times like this.
Cheers

Green08 · 14 October 2008

FOR IMMEDIATE RELEASE

October 10, 2008 Media Contact:

LaJuan Williams-Dickerson

Main Street Bank, Northville, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC approved the assumption of all the deposits of Main Street Bank, by Monroe Bank & Trust, Monroe, Michigan.

All depositors of Main Street Bank, including any with deposits in excess of the FDIC’s insurance limits, will automatically become depositors of Monroe Bank & Trust, and they will continue to have uninterrupted access to their money. Depositors will still be insured with the new institution. Therefore, there is no need for customers to change their banking relationship to retain deposit insurance.

---------------------------------------------------------------------
FOR IMMEDIATE RELEASE

October 10, 2008 LaJuan Williams-Dickerson

Meridian Bank, Eldred, Illinois, was closed today by the Illinois Department of Financial Professional Regulation-Division of Banking, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC approved the assumption of all the deposits of Meridian Bank by National Bank, Hillsboro, Illinois.

All depositors of Meridian Bank, including any with deposits in excess of the FDIC’s insurance limits, will automatically become depositors of National Bank, and they will continue to have uninterrupted access to their money. Depositors will still be insured with the new institution. Therefore, there is no need for customers to change their banking relationship to retain deposit insurance.

The failed bank’s four offices in Altamont, Carlyle, and Eldred will reopen for normal hours on Saturday, October 11th and the Alton office will reopen Tuesday, October 14th, as branches of National Bank. Over the weekend, customers of Meridian Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

Meridian Bank had total assets of $39.18 million in total assets and $36.88 million in total deposits as of September 25, 2008. National Bank will purchase approximately $7.55 million of Meridian’s assets, and did not pay the FDIC a premium for the right to assume all of the failed bank’s deposits. The FDIC will retain the remaining assets for later disposition.

http://www.gracecheng.com/stocks/2008/10/10/market-summary-what-a-ride-and-bank-failures-too/

Green08 · 14 October 2008

Failed Bank List
-------------------------------------------------------------------------
The FDIC is often appointed as receiver for failed banks. This page contains useful information for the customers and vendors of these banks. This includes information on the acquiring bank (if applicable), how your accounts and loans are affected, and how vendors can file claims against the receivership.

This list includes banks which have failed since October 1, 2000.

Bank Name Closing Date Updated Date
Meridian Bank, Eldred, IL October 10, 2008 October 10, 2008
Main Street Bank, Northville, MI October 10, 2008 October 10, 2008
Washington Mutual Bank, Henderson,
NV and Washington Mutual Bank FSB, Park City, UT September 25, 2008 September 25, 2008
Ameribank, Northfork, WV September 19, 2008 September 19, 2008
Silver State Bank, Henderson,
NV En EspaÃ±ol September 5, 2008 September 5, 2008
Integrity Bank, Alpharetta, GA August 29, 2008 August 29, 2008
The Columbian Bank and Trust,
Topeka, KS August 22, 2008 August 22, 2008
First Priority Bank, Bradenton, FL August 1, 2008 August 1, 2008
First Heritage Bank, NA,
Newport Beach, CA July 25, 2008 July 25, 2008
First National Bank of Nevada, Reno, NV July 25, 2008 July 25, 2008
IndyMac Bank, Pasadena, CA July 11, 2008 July 11, 2008
First Integrity Bank, NA, Staples, MN May 30, 2008 July 25, 2008
ANB Financial, NA, Bentonville, AR May 9, 2008 July 25, 2008
Hume Bank, Hume, MO March 7, 2008 July 25, 2008
Douglass National Bank,
Kansas City, MO January 25, 2008 July 25, 2008
Miami Valley Bank, Lakeview, OH October 4, 2007 July 25, 2008
NetBank, Alpharetta, GA September 28, 2007 July 25, 2008
Metropolitan Savings Bank,
Pittsburgh, PA February 2, 2007 July 25, 2008
Bank of Ephraim, Ephraim, UT June 25, 2004 April 9, 2008
Reliance Bank, White Plains, NY March 19, 2004 April 9, 2008
Guaranty National Bank of
Tallahassee, Tallahassee, FL March 12, 2004 July 25, 2008
Dollar Savings Bank, Newark, NJ February 14, 2004 April 9, 2008
Pulaski Savings Bank, Philadelphia, PA November 14, 2003 July 22, 2005
The First National Bank of Blanchardville,
Blanchardville, WI May 9, 2003 July 25, 2008
Southern Pacific Bank, Torrance, CA February 7, 2003 July 25, 2008
The Farmers Bank of Cheneyville,
Cheneyville, LA December 17, 2002 October 20, 2004
The Bank of Alamo, Alamo, TN November 8, 2002 March 18, 2005
AmTrade International Bank of Georgia, Atlanta, GA
En EspaÃ±ol September 30, 2002 September 11, 2006
Universal Federal Savings Bank, Chicago, IL June 27, 2002 April 9, 2008
Connecticut Bank of Commerce, Stamford, CT June 26, 2002 July 25, 2008
New Century Bank, Shelby Township, MI March 28, 2002 March 18, 2005
Net 1st National Bank, Boca Raton, FL March 1, 2002 April 9, 2008
NextBank, N.A., Phoenix, AZ February 7, 2002 July 25, 2008
Oakwood Deposit Bank Company, Oakwood, OH February 1, 2002 July 25, 2008
Bank of Sierra Blanca, Sierra Blanca, TX January 18, 2002 November 6, 2003
Hamilton Bank, N.A., Miami, FL
En EspaÃ±ol January 11, 2002 July 25, 2008
Sinclair National Bank, Gravette, AR September 7, 2001 February 10, 2004
Superior Bank, FSB, Hinsdale, IL July 27, 2001 July 25, 2008
The Malta National Bank, Malta, OH May 3, 2001 November 18, 2002
First Alliance Bank & Trust Company, Manchester, NH February 2, 2001 February 18, 2003
National State Bank of Metropolis, Metropolis, IL December 14, 2000 March 17, 2005
Bank of Honolulu, Honolulu, HI October 13, 2000 March 17, 2005

http://www.fdic.gov/bank/individual/failed/banklist.html

Green08 · 14 October 2008

Source: Federal Deposit Insurance Corp.

In 1989, 534 banks closed their doors. Who picked up that tab? I don't even recall hearing about it in the News. It was on Bush Seniors watch 1989 to 1993. Bush Sr. is credited with about 1,015 bank collapses. That would include Johnnie McCains Keating 5 swindle that he had nothing to do with.

Ronald Reagan had 2,036 bank failures during his term..1981 to 1989 in office.

No wonder they were trading arms for hostages, because they had no money..And yet they credit this guy in reversing so call Jimmy Carters failed term?

Jimmy Carter was President during 1977 to 1981 estimated about less than 70bank failures....and

Bill Clinton served from 1993 to 2001. Remember he inherited Reagans and Bush's huge Bank Failure fiasco's. Bill had about 900 failures.

I see the picture very clearly now. Republicans always make us lose money and drive the economy into the dirt....and Democrats uplift peoples lives. This clearly shows the history of Republican Leadership Economic Management Failures. There's No if and's or but's about it.

Bank closure histories:

2000-2007: 32

1990-1999: 925

1980-1989: 2,036

1970-1979: 79

1960-1969: 44

1950-1959: 28

1940-1949: 99

1934-1939: 312

http://www.nowpublic.com/world/history-united-states-bank-failures

Page · 20 October 2008

right now after looking to the market situation every one is facing towards bank for withdrawing the money. Bank usually maintain CRR for that but if people comes in bulk then it is not possible to pay money to all the customer which raised rumors and panic all around.

This happens not only with this bank but with all banks in the world...............

Another Bank Run Underway

auric

Jack5

wayneL

VIVA LA LIBERTAD, CARAJO!

Jack5

white_goodman

BOC

rub92me

Don't look back

disarray

wayneL

VIVA LA LIBERTAD, CARAJO!

Jack5

cuttlefish

disarray

georgey

Green08

Green08

Green08

Page

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