Regional Banks Collapse Snow Ball Seems to Continue Rolling Downhill

Matthew Wurtzel, TheDeal.COM, wrote on June 4 that J.P. Morgan Chase & Co.'s rumored interest in acquiring a commercial bank, specifically a Southern bank. The original target of the rumors was SunTrust Banks Inc. Then, it expanded to include Washington Mutual Inc. -- until TPG Capital swooped in. Now, with Wachovia on the ropes, the media and blogosphere have turned their attention to North Carolina.
The rumor of Jamie Dimon's interest in expanding the bank had been the topic of analyst and media speculation long before J.P. Morgan rode in to save Bear Stearns Cos. from collapse.

After Fannie Mae, Freddie Mac and IndyMac Bancorp failed which banks do have a big potential collapse?

Moody's rated, on January, the odds of a rescue for a number of large banks if they got in a bind :

• Bank of America(BAC) : very high (70-95%)
• Bank of New York(BK) : very high
• Citigroup(C) : very high
• JPMorgan Chase(JPM) : very high
• State Street(STT) : high (50-70%)
• U.S. Bancorp(USB) : high
• Wachovia(WB) : high
• Wells Fargo(WFC) : high
• SunTrust Banks(STI) : low (up to 30%)
• Washington Mutual(WM) : low

Related Posts :

Short Suntrust Bank, Inc. (STI)
Banks and Brokers at Greatest Risk of Default


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