Jun 26, 2009
During the past year, the government has taken drastic steps to repair the financial system. It has injective billions of taxpayer money and created a new regulatory structure to ensure that the financing problems facing the nation’s biggest banks today will not reoccur in the future. In addition, a “stress test” was also conducted and it was revealed that big banks need to raise an additional $75 billion in capital to prop up their balance sheets.
While bank shares remain low, most banks are now recovering from the crisis. It is only a question whether depositors and investors will still trust banks with their money. There are many factors to consider today with regards to choosing the bank you trust your money with. Of particular note is the emerging gap between the healthier and weaker financial institutions. So the question is, which banks should you leave your money with? And does being a “healthier” bank a guarantee to the public that their deposits are safe? Below are some blogs that dealt with the question this week:
Marcus @ Huffington Post filed an entry titled “Five Banks Seized, Raising US Tally This Year to 45”. Essentially, this short post merely stated facts about how bad it is for the financial industry. There are indications that the economy might rebound during the later part of this year or the first part of next year. For now though, the recession is still driving up foreclosures and unemployment.
Peter Cohan @ Daily Finance wrote an interesting blog post “Can We Make Safe Banks?” The entry started out by detailing why the planned 50% increase in executive compensation in Citibank is a bad idea. If the company is struggling and dealing with losses, then the people who are running them should not be rewarded. In addition, the article further explained why client deposits should be invested in the safest possible medium.
Dave @ The Wall Street Journal gave an in-depth analysis about how safe your money really is on the bank. His article “Is Your Money Safe in a Bank?” dealt with the issues most consumers are concerned with. Everything from the ups and downs of the industry to diversifying exposure is explained in this entry.
- Executive Compensation – Weekly Round Up
- Stock Index Funds: Weekly Round-Up
- GMAC LLC Changes Its Name to Ally Bank
- Offshore Banking – Weekly Round-Up
- Credit Card Act – Weekly Round-Up
- Federal Reserve Bank’s Additional Powers – Weekly Round-Up
- Sites That Give Weekly Banking Deals
- Credit Score and Credit Rating – Weekly Round-Up
- Credit History and How It Affects You: Weekly Round-Up
- Banking Deals – Weekly Roundup