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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (31845)	8/28/1998 6:09:00 PM
From: Joseph G.	Read Replies (1) \| Respond to of 132070

<< Friday August 28, 4:53 pm Eastern Time Panic selling of U.S. bank stocks continues By Cal Mankowski >> wait till he sees real panic -g-

To: Knighty Tin who wrote (31845)	8/28/1998 7:03:00 PM
From: PaperChase	Read Replies (1) \| Respond to of 132070

Banks always get in trouble because they like to show they can run in the fast lane with "sexy" investments but unfortunately they employ empty suits. Let's see all the bad decisions bankers make. First it was bad loans to REITS, then it was bad oil industry loans ala Texas style, then it was bad real estate loans (again), then it was loans to inflation ravaged countries like Brazil, then it was credit card loans to overleveraged consumers, and now it is derivative exposure. Gosh these guys never learn but they are real good at hiding losses thru exceptional accounting techniques that would make COMS and CPQ highly envious. Since most bank's commericial loans tend to be of low quality to higher risk companies and since we have excess capacity in almost every industry, I expect pressure on bank earnings to accelerate. But the catch is that banks won't begin to show their losses until their audit by the FDIC or Controller of the Currency, and then only if the government decides its time to lean on them.