After watching M&I's deep plunge of over 10% yesterday, I wonder how close they may be in the vacuum behind Fannie & Freddie, and IndyMac (with absolutely no chance of any kind of a bailout deal). I realize that M&I has some cash on hand, but it seems to be evaporating very quickly with all the already disclosed losses, and unless OIL PRICES come down very fast, losses are likely to compound instead of get better into Q3. Either way, M&I looks like it's in big time trouble and headed towards the toilet if not totally down the tubes, as evidenced by their steady spiral downward for almost a year... Sort of like what happens after eating the whole thing in a third world country, then finding out it was not refrigerated and was loaded full of salmonella. And the locals seemed to eat it up with a smile and handle it so well ;)
After regional rival, Associated Banc-Corp's huge recent writedown disclosure, it can only serve to further bring into question the problems in their region (along with exposure in other heavily troubled regions), of which, all banks, especially those heavily leveraged into the extremely risky SUB-PRIME MELTDOWN will eventually have to "COME CLEAN", and sooner rather than later as it now seems, due to the FED yesterday agreeing to new rules to reign in abuses at banks in a new oversight role, essentially putting them all under a powerful regulatory microscope. Many banks, especially those in trouble, have been using various tactics to delay bad loan loss disclosures into the future, at least until next quarter (Q3), in which time they seem to hope things will turn around. What if the economy worsened and their huge losses compounded instead?? Then delayed loss disclosures will become potentially catastrophic to customers and investors. I wonder how many IndyMac's are out there waiting for an extensive underwear exam??
Attention. Officer Burnie on Deck. What's that private? That ain't nothin' Drill Sargeant. Wait a second, somethin' smells really wrong here... Is that another covered-up undisclosed burn-mark I see?? Drop down and give me 100(%).
Hello Receiverships?? How Many? Time will tell the Tale (or is that Tail)...
