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Banking Crisis Informative - Banking Crisis (from the London Times)

Review by 15170 on 2008-08-19
From today's London Times:

"The deepening toll from the global financial crisis could trigger the failure of a large US bank within months, a respected former chief economist of the International Monetary Fund claimed today, fueling another battering for banking shares.

Professor Kenneth Rogoff, a leading academic economist, said there was yet worse news to come from the worldwide credit crunch and financial turmoil, particularly in the United States, and that a high-profile casualty among American banks was highly likely.

“The US is not out of the woods. I think the financial crisis is at the halfway point, perhaps. I would even go further to say the worst is to come,” Prof Rogoff said at a conference in Singapore.

In an ominous warning, he added: “We’re not just going to see mid-sized banks go under in the next few months, we’re going to see a whopper, we’re going to see a big one — one of the big investment banks or big banks,” he said. "

I'm betting on Wachovia. Any takers?
Comments:4 Replies - Latest reply on 2008-08-19
Posted by Slimjim on 2008-08-19:
I know Bank of America has some issues right now. I don't know if they are on that scale though to be the "one".
Posted by Anonymous on 2008-08-19:
Wachovia or Wamu -- Hmmm... Call it in the air.

(great article Ken... I love stuff like that.. Thanks!)
Posted by madconsumer on 2008-08-19:
bank of america is the only bank i would trust with my money.
Posted by CUFlipSide on 2008-08-19:
I read a couple of weeks back that foreign economists were predicting that Wachovia was on the ropes, and possibly not going to make it. I believe I read that in something published in Sydney, Australia. So it looks like we'll be the last to know.

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