Amish in ascendancy

The list of failed United States FDIC banks has grown from two to five in the last couple of weeks. Here is a list of insolvent banks. The latest world Big World Bank to teeter on the verge of insolvency is United Bank of Switzerland. Yes, it’s true, a Swiss bank.

The current financial crisis is not one of liquidity, as the Federal Reserve says. It’s really an issue of insolvency. Here is a list of insolvent banks, with their writedown, rundown, or losses in the millions or billions next to their name. UBS is United Bank of Switzerland. You will notice the first few sound familiar. After Bear Stearns went bankrupt, and the Fed opened up an emergency take-out window, Goldman Sachs and Lehman Bros took advantage of the fire sale. That resulted in a downgrading of their S&P rating. To negative.

Here is a good article from Bloomberg about the Swiss Bank situation

So what’s this have to do with the Amish? Our country is in a deep crisis, with a current account deficit that cannot be sustained, a falling currency, and an energy crisis, all at once. Just before the Soviet Union fell, it was enduring the same. The US is now the world’s largest debtor nation, and for a country with the world’s largest economy, if (when) we default, the world economy comes with it. The cycle of things will stop. I don’t know how to build a home, make a tool, grow some food, coordinate with my neighbors, create fire, or use a horse for transportation. But the Amish do.

Name – ($) writedowns so far (does not include loss reserve increases or remaining exposure). The list on the original page offers a hyperlink for each bank, so you can check it out for yourself.
Goldman Sachs – $5.4B
IKB – $2.71B + 10.2B
Morgan Stanley – $16.1B
Merrill Lynch – $22.5B
Lehman Brothers – $5.4B
Citigroup – $46.6B
Washington Mutual – $1.6B
DZ BANK AG – $2.1B
HSBC – $26.5B
UBS – $19.2B
ABN AMRO Group – $2.4B
Wachovia – $3.2B
The Royal Bank of Scotland Group PLC (RBS) – $3.6B
Mitsubishi UFJ Financial Group – $510M
HBOS PLC – $2.5B
Comerica Incorporated – $63M
Fifth Third Bancorp – $155M
US Bancorp – $690M
Royal Bank of Canada – $544M
Canadian Imperial Bank of Commerce – $3.2B
Bayerische Landesbank – $2.8B
Bank of Montreal (BMO) – $639M
Credit Suisse – $3.1B+$2.85B (est.)
Wells Fargo – $1.4B
Natixis-$1.8B
Mizuho Financial Group Inc – $3.2B
WestLB AG – ?
Barclays PLC – $3.1B?
Commerzbank – $855M
Deutsche Bank – $3.2B
JP Morgan Chase – $3.7B
SunTrust – $222M
Bank of America – $7.2B

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2 thoughts on “Amish in ascendancy

  1. That’s why I stuff my money in my shoe. I’m 5’5 but I am 20 feet tall after payday lolChuck

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