Chris Whalen of Institutional Risk Analytics spoke to Fox Business yesterday on the state of the banking industry and the mortgage market.
- 0:50 Wilmington Trust selling enterprise for half of what it was worth; Bank directors worried about institutional failure.
- 1:30 Wilmington Trust selling for fair value half of previous day because they agree.
- 2:00 The government needs to restructure banks, you can’t prevent it. We’ve wasted two years, and haven’t restructured the top banks, but for Citi.
- 2:50 White House and Treasury lacking vision and competency on this economy.
- 3:18 Bank of America will need to be restructured; this isn’t about the documentation problem, this is because the cost of servicing the property.
- 4:30 Distressed property buyers are cash buyers. They don’t have leverage. The leverage is the FDIC taking it over.
- 5:05 Things are getting worse for the bigger banks. Post subsidies, they are now getting worse. Little banks are getting better.
- 6:00 U.S. Bancorp is doing great.
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