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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mthomas who wrote (33632)	6/1/2005 2:34:37 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 110194

A stable banking system needs far more capital than is currently required by the FDIC or OCC. If you are a bank and the capital requirements are raised, you sell more stock and meet the new capital requirements. Banks which cannot find a market for their stock have no business running a bank - the marketplace having already declared them insolvent. In Los Angeles, since 1990, we have experienced a period of time during which a large number of new banks have been established to better serve many markets. These new banks are a far better asset to the community than the travesties which vanished during the 1990 real estate bust. Banking institutions like Glendale Federal run in an irresponsible manner by a group of clowns who brought little understanding to the banking industry other than a long established "tee time". Unfortunately banks like Glendale are merely closed at taxpayer expense. I had expected the CFO of GlenFed to serve a long prison sentence - but sadly that does not seem to be the American way. .