More Banks Fail...
26/07/08 10:27
The rift in our already fragile economy continues to widen as financial institutions continue to experience serious cash flow problems and complete failures. The Fed continues to offer unfettered access to loan funds that are keeping many of the larger lenders and debt holders afloat. How long can the infusion continue and at what cost? When the dust settles and the smoke clears will any independent banks exist anymore? We may very well find ourselves with our banks and lenders completely in the hands of the Fed and under their control before the financial bailout is over.
Federal regulators closed the 1st National Bank of Nevada and the First Heritage Bank, which operates 28 branches in Arizona, Nevada and California. The banks will be reopened on Monday as branches of Mutual of Omaha bank. The FDIC stated that the bank takeover was the least costly way to deal with the crisis. The banks assets had dropped from 4.1 billion to 3.6 billion in 6 months. Depositors were assured that their funds would be available and safe. That remains to be seen as some depositors of the failed IndyMac bank may not see part of their funds for some time. One official stated that it might take several years to resolve the collapse and address customer claims. Read the story here.
Oil continues its downward trend which will come as a welcome relief for motorists. Overall oil is down 16.3% from the high of $147.50 set on July 11, 2008. The market closed Friday with oil futures at $122.50 down 5.9% from the beginning of the week. Natural gas and coal prices also slipped during the week. Is the market finally seeing a lasting correction? Congress continues to debate over regulation of speculators within the market, that have been at least partially responsible for the wild fluctuations and increases in the price of commodities. Read the story here.
Until next time...
Federal regulators closed the 1st National Bank of Nevada and the First Heritage Bank, which operates 28 branches in Arizona, Nevada and California. The banks will be reopened on Monday as branches of Mutual of Omaha bank. The FDIC stated that the bank takeover was the least costly way to deal with the crisis. The banks assets had dropped from 4.1 billion to 3.6 billion in 6 months. Depositors were assured that their funds would be available and safe. That remains to be seen as some depositors of the failed IndyMac bank may not see part of their funds for some time. One official stated that it might take several years to resolve the collapse and address customer claims. Read the story here.
Oil continues its downward trend which will come as a welcome relief for motorists. Overall oil is down 16.3% from the high of $147.50 set on July 11, 2008. The market closed Friday with oil futures at $122.50 down 5.9% from the beginning of the week. Natural gas and coal prices also slipped during the week. Is the market finally seeing a lasting correction? Congress continues to debate over regulation of speculators within the market, that have been at least partially responsible for the wild fluctuations and increases in the price of commodities. Read the story here.
Until next time...