Are other big banks in-line to tumble the way Indy Mac has? Don't believe the hype according to some:
At the time of collapse, IndyMac's debt was 140% of its tangible capital and reserves, but both WaMu and national city have a debt level of less than 50% of its assets, Cassidy said.
"It's bad and it's not over yet, but investors are throwing out the baby with the bath water," he added. "The prospect of one of these banks failing is far-fetched: both have ample liquidity."
Either way, this is a sticky situation. Hopefully, investors can batten down the hatches a bit and put some of this instability aside.
1 comment:
It will be interesting to see, as the interest rates rise, if even huge lending institutions like WAMU can survive?
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