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The worst case estimates I have seen for possible US bank failures yet to come are under 1,000.  Most of the smaller regional and local banks are solvent and happy to make loans to willing, credit worthy individuals.  It is a lack of such borrowers that is the problem.

Hell, we are at a point where, to avoid the cost of future  bailouts, it might be cheaper to have the US government buy up the outstanding stock in Citi, BofA, etc. at market as of close on, say Friday last and then perform a thorough audit, divide the remains up into sensible new banks that are small enough to fail, inject capital as required and sell them off to private investors ASAP.  At close Friday Citi was worth less than $15 billion, and Bank of America was worth less than $40 billion, based on stock price and total shares.

There is really no reason to buy the stock.  Requiring an audit would show their insolvency and then the shareholders would be wiped out and the management would be replaced, but the (you supply the noun) in D.C. couldn't even bring themselves to BUY the banks in order to close them long enough to make their successors sound.  Words fail.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Mar 22nd, 2009 at 11:42:28 PM EST
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