My bank looks like it's going belly up

[DPete]

The local bank where I have banked for years stock closed @ $0.85 per share today down from $ 21.00 a year ago.36 branches here in central Ca. Things are definately bad here.

 

[Turbo21835]

Sad thing is its everywhere. Uncle has a GM dealership. GMAC basically axed most dealers line of credit for floor inventory. Uncle went to the bank he has been with for over 30 years, where the promptly told him they have no money to loan out

 

[eRay]

The banks don't seem to want any money to loan out. I renewed a CD the other day. 2.75% for 12 months. It's a joke.

 

[ohioduramax]

I just got 3.44 for 12 months

 

[jmac]

I think a CD might be all there is rite now. Eveything else is going bust. Dpete your bank ain't the only one.

 

[Turbo21835]

I wish home loan rates would follow cd rates

 

[RocksnRoses]

Sad thing is its everywhere. Uncle has a GM dealership. GMAC basically axed most dealers line of credit for floor inventory. Uncle went to the bank he has been with for over 30 years, where the promptly told him they have no money to loan out

I only just heard recently that our local GMH (General Motors Holden) dealer here told a customer that GMAC were calling all loans in and in future the dealer would have to find other finance sources or the customer would have to find his own.

Rn'R.

 

[DPete]

Down to $0.60 Friday, never thought I'd see it!

 

[MKTEF]

You are not the only ones.
Banks here in Norway isn't very keen on giving anybody a loan.
The rescue pacage was tailored to the biggest bank, and didnt help the others.
Customers are moving away from that bank because it is very slow on going down with the interrest on houseloans.

Problem is nobody realy want to say how deep in trouble they are....

Some firms in the oilsector is also in big trouble, as the prices is dropping.
Todays news says some of those companies only get loans at 75%, they call it bankrupt loans...
Oil sector is in big trouble because of the 50$ price, many of the projects is based on a much higher price. Over here they will be folloving construction....

 

[stock]

One of our big 2 bank shares were @84c on friday down from e18 last year the other wasn't much better at around 150c ,and here none of our banks are saying how exposed they are

 

[stumpjumper83]

Then congress gives them a stimulus package, and they send the board on a trip, buy another bank out, which is in the same shape, then beg for more money for the government and get it....

 

[australian pete]

we are in much better shape in australia, we have 4 major banks , all with triple A credit rating, only 20 in the world have triple A rating.no banks have gone bust here, car industry may be in for some trouble though, most car dealers have their floor plan ( car stock) financed by 2 US finance companies, GMAC and GE money, they have announced they are pulling out of australia end of december, our federal government have said they will guarantee loans made by banks to dealers to finance their floor stock, however only to strong, profitable dealers,i think many shaky dealers will be closed by christmas, some have already closed.

 

[surfer-joe]

DPete, what bank in California? I still have money in a bank in Bakersfield. (No, not enough for a bank robbery)

 

[DPete]

The bank went to FDIC takeover after hours yesterday 2-6-09 and are being purchased. Buisness is supposed to be normal on Mon. Stockholders lost their investment as the shares went to 00. Kind of scary but I left my accounts open as I was assured the takeover would be smooth. Don't know if my credit line will continue it is a 0 balance but comforting to know the money was available if needed. Never had my bank go broke before

 

[surfer-joe]

Sorry to hear it Pete. Here's an article out of the Washington Post concerning your former bank: http://www.washingtonpost.com/wp-dyn/content/article/2009/02/06/AR2009020602988.html?hpid=sec-nation

I suspect we will all be reading about many more of these over the next year or so. This isn't done by a long shot. What I do hate to see however, is consolidation of the small hometown style banks into large conglomerates. We all become just a much smaller number if we deal with the large banks now.

I've moved almost everything to a local small credit union. Protection of funds is the same, and bank fees are much less. I do have to run checks for deposit further from the house however. That's about the only down-side. My last affiliation with a large bank (Chase) will end at the end of this month. The lady at the credit union said they are being swamped with people switching to them away from banks.

 

[DPete]

Yeah, I feel bad for the employees, the branch manager (Susan) who has been a great help to me has been there 15 years and her 401K was all shares now worth zip, somehow she still managed a smile when I was there Friday. Life goes on

 

[Greg]

That is why I deal with a small local community bank. They are strong, can react quickly to my needs, and I know everyone there.

I am on my second bank that way. My original community bank was sold a number of years ago to a large bank. Service went out the window, constant change in people to deal with. Last person there I knew left for small bank. I went with him. Turned out the best move I could have made.

The old bank got in trouble a couple of years later and went belly up. They were bought by a huge bank from Canada. You can imagine the service reaction time to anything now.