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Poll: Which Bank Will Go Bust Next?

This is an open thread for all of us to discuss the soundness of banks. Please vote and leave a comment to justify your vote. This poll is worthless without your thoughts! If you don’t see your bank listed, you can add it to the poll. n

Which Bank Will Go Bust Next?
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Comments (27)
1 Star2 Stars3 Stars4 Stars5 Stars (18 votes, average: 2.78 out of 5)
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27 Existing Comments
  1. Dan said:
    on July 16th at 01:56 pm

    Trying to cause a bank run?

  2. Craig said:
    on July 16th at 06:29 pm

    My guess would be Nat City because they had a bigger presence in secondary mortgage HELOCs to finance homes up to 95% of value. Market values drop, economy slows, then people cut the payment to the second mortgage before the first. What might save them is they seemed to see it before some of the other banks and made some corrections. Question is did they catch it in time?

  3. foxtrot3 said:
    on July 16th at 09:20 pm

    Hmmm… Many votes, but no comments. I voted Downey because I was a mortgage broker back in the days when option ARM’s were hot and heavy, and all our deals went either to World Savings or Downey.

    I see a lot of people picked WAMU and that’s understandable. Personally, I think they’re too big and too diversified to fall, but who knows?

  4. j said:
    on July 17th at 07:26 pm

    trying to cause panic… “short seller”

  5. Penny said:
    on July 17th at 08:27 pm

    added a bank – Integrity Bank (Alpharetta, GA).
    This bank is on two privately-compiled lists troubled banks

  6. R DELT said:
    on July 17th at 09:54 pm

    Bank of America is the only strong bank right now. They have over 807 Billion dollars on Deposits and 295 Billion in liquidy assets. And if they were not to make any money or loans for the next 2 years they will still be in good shape.

  7. domineaux said:
    on July 17th at 10:00 pm

    Wells Fargo – 2nd largest holder of mortgages should definitely be in the Queue.

  8. J. Wu said:
    on July 17th at 10:04 pm

    Wells Fargo actually announced stellar results yesterday, sending their stock soaring.

  9. nugien said:
    on July 18th at 01:00 am

    Watch out with Wachovia and Downey Savings. They have a rather big chunk in Mortgage subprime lending. I should say Wachovia or Downey Savings might be next… Wamu even though there is lot of rumor about them (besides their tumbling stock value) but they are too big to fall cause they are diversified. Have worked for Wamu when they restructured last year. They moved their data center to San Antonio, TX and Cust Svc Center to other locations. Wells Fargo is too conservative in their managment and budget portfolio and have extra precaution. Dont think Wells Fargo will fall.

  10. jojo said:
    on July 18th at 01:12 am

    INDYMAC BK FSB CA E-
    INTEGRITY BK GA E-
    FEDERAL TRUST BANK FL E-
    MAGNET BANK UT E-
    SOUTHERN COMMUNITY BK GA E-
    FREEDOM BK FL E-
    AMERICAN STERLING BK MO E-
    FIRST PRIORITY BK FL E-
    FIRST SUBURBAN NB IL E-
    FIRST PERSONAL BK IL E-
    ISN BK NJ E-
    EBANK GA E-
    MAIN ST BK MI E-
    PENNSYLVANIA BUSINESS BK PA E-
    STOCKMANS BANK OK E-
    RIVERGREEN BK ME E-
    AMERIBANK INC WV E-
    HORIZON BANK IA E-
    PLATINUM COMMUNITY BK IL E-
    FIRST TUSKEGEE BK AL E-

  11. Douglas said:
    on July 18th at 02:38 am

    Get your deposits in order (within FDIC limits) and DO NOT abandon your bank !!!!!!!!

  12. Bibi said:
    on July 18th at 03:33 pm

    Thank you, Douglas. Succint and to the point.

    I have a question for those of you who suggest Wachovia, and even WAMU: Don’t you think that because they are large banks with diversified investments that they are safer, even if a chunk was in the sub-prime business? Any edification here is appreciated.

  13. James - BankAround said:
    on July 18th at 06:15 pm

    Let’s not try to cause another bank run. Downey definitely seems like they are in trouble though. Just make sure not to put over 100K in any of these banks to be safe.

  14. Craig said:
    on July 18th at 08:17 pm

    I am not concerned about Wachovia. They have repeatedly noted they are not hurting for deposits; Plus they have the brokerage division and do clearing for other brokerages. Recently they merged with A.G. Edwards and received additional customer assets. Cap West was a mistake, but it is just a fraction of thier business.

  15. William K. said:
    on July 19th at 01:33 am

    If any of the US banks had to do a legit balance sheet and didn’t have untold billions of short term loans from the federal reserve, there would have been hundreds of bank failures already. IndyMac wasn’t even on the FDIC troubled list when it failed. Anyone who thinks there money is safe, is probably wrong. To say that Wells Fargo earnings were optimistic would be an understatement, and how do you think B of A feels after spending a total of 7 billion for a company that has default rates approaching 20%. Don’t mean to spoil the party, but if this solvency crisis has taught us anything it is that banks, the govenment, and the media are all in on the continual lies. The depositors will always be the last to know.

  16. Wes said:
    on July 19th at 01:49 am

    Chill out. Stupid questions like this and the liberal media will scare everyone. Experts say things will get better…. None of the large banks are in trouble. You can’t have a sagging economy and record oil prices and think everyone is going to have record earnings. Cycles happen.

  17. Jimmy said:
    on July 19th at 06:34 am

    American Express is going to drop an earnings bomb on monday that is going to pull Mastercard and Visa down the drain with them. I work in NYC and the office mood was horrible. They are announcing a huge increase in defaults on bad business credit extensions from the mortgage fallout. Execs were in meetings all day. The mood is horrible at work. A huge reorganization and definite displacement of employees is expected in August as well.

  18. The Finance Section said:
    on July 20th at 09:34 am

    I don’t think it will be HSBC as they have a strong balance sheet. As for other bank failures, I think they will be fewer in number as the sector consolidates, with weaker, smaller banks being taken over.

  19. smc341 said:
    on July 21st at 09:22 am

    I got my mortgage through Washington Mutual 5 years ago, I had excellent credit and received a fixed rate mortgage @5% for 15 years. I also have some CD investments with them. I have not had any problems but I will be keeping an eye on this bank. I am not worried yet.

  20. Hana Hawaii said:
    on July 24th at 02:57 am

    My guess is Sovereign Bank. They had a decent promotion but don’t pay after 90days. They don’t even answer to my question. Worst customer service than Bank of America, which means, pretty bad.

  21. sherrie e said:
    on July 25th at 10:06 am

    ok i have a question for anyone, where would you say would be the best place to put about $5000.00 just to start my interest bearing savings. i am new to the world of retirement savings . i would appriciate any info. you may have

  22. Ugly American said:
    on July 27th at 07:40 am

    The old guy in charge of Wells Fargo talked about his ‘no junk’ rule back when the market was still booming and everyone was making fun of him for being old fashioned. It reminds me of when people were making fun of Warren Buffet for not buying any tech stocks just before the .com bubble burst. Experience wins again.

    Just for the record, the last big wave of S&L failures was under Bush’s dad and a couple of the guys running for president were involved in the junk biz. Do your research.

  23. Tim said:
    on July 31st at 11:22 pm

    I voted WaMU, just because of a very scary graphic I saw, that showed each banks involvement in the mortgage thing. Wamu had it’s fingers deep in the pie, which may come to haunt them.

  24. Sammy said:
    on August 3rd at 06:35 am

    I’m thinking my bank is pretty safe…I just installed a new lock on the one under my matress…

    On a more serious note — I see a lot of votes based solely on lending issues, but what about the banks facing two and three class action lawsuits? I’m thinking the formula should be: subprime lending + class actions pending = TANK.

  25. TJ said:
    on September 2nd at 12:42 am

    God bless Bank s of america

  26. jojo said:
    on September 16th at 05:06 am

    Hi tim how about a link to that graph…

  27. Jeanie Richardson said:
    on September 26th at 11:26 am

    Hey Wes…any comments as of 9/26/08 other than opps? Maybe we can’t listen to the right wing whackos for the truth huh? I’ve never seen a cycle like this!