James48843
Well-known member
Japan off to a depressing start.
Now down (-2.27%) this morning.
Now down (-2.27%) this morning.
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Or you can now use TapaTalk again!I Fund for November 2009
- Thread starter James48843
- Start date
CIT going down in flames. The problem's not just at CIT, but the domino effect it has on other regional banks. Once they get scoured, the other banks then have to reset their books, which throws them out of balance forthe year....then creating other dominos in other banks and institutions that carried their loans on the books. The good news is that now the taxpayers own 2.3 billion in worthless CIT stock.
CIT's move will wipe out current holders of its common and preferred stock. That means the U.S. government will likely lose the $2.3 billion it sunk into CIT last year in return for preferred shares to prop up the ailing company. The government could have lost billions more, however, had it not declined to hand over more aid to the company earlier this year.
Treasury Department spokesman Andrew Williams said the government will be closely monitoring the bankruptcy proceedings, but acknowledged that "recovery to preferred and common equityholders will be minimal."
Common stockholders set to lose their investment include FMR LLC of Boston with a 9.9 percent stake in CIT and San Diego-based Brandes Investment Partners LP with a 9.7 percent equity position, according to CIT's filing.
Silverbird
Well-known member
Wrong fund, Phil, this is international. I want to get news on the DAX, Nikkei, and the overseas Financial companies here.They're interrelated. But you can check out what happened to Northern Rock, and UBS. If you examine the companies in the I fund that have lost the most money, you need only take a look at their financial stocks. However, bank failures here definitely affect them.
The European shares were dragged down by the finance sector today. It's the same issue as here, with weak banks mostly in Britain and France dragging down the larger stock market.
Market fundamentals are in question. When the finance side can only head south, it drags down the entire index. About 20-30% of the TSP stock funds are invested in the banking/finance industry. Despite the infusion of capital by government, these banks STILL carry a lot of dead weight in bad loans.Yeah. Dollar values and gold usually carry an inverse relationship, like stocks and bonds. There are a LOT of dollars out there, but with the banks getting rid of a lot of their dead weight, the dollar may strengthen as time goes on. And the market. We'll see.
While our banks are bad, and they carry a lot of debt that may not be repaid, they're not as bad off as a good number of foreign banks. They sometimes carry dead loans on their books for many, many years that show them in the black, when in reality they've lost a lot of money that's unrealized loss.
It's why I didn't much care for bank deregulation in the US. It caused quite a number of problems for us now.
By the way, if you ever get a chance to look at how sometimes capital laws that states create really cause problems, just take a look at P&G's experience in South America. They were carrying billions of dollars that they couldn't take out of the country because they weren't permitted by the government for many years. So they had to constantly buy things. They ended up owning a lot of real estate, but couldn't repatriate their capital. Their profits kept getting bigger and bigger on their books. They just couldn't get to it.
mayday
Active member
mayday
Active member
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