Crisis Coverage: Not All Banks Are Banks

It has been pointed out to me that nearly everyone discussing this crisis is referring to things like "banks need capital" or "the Fed increased liquidity available to banks" or "the financials are in trouble", yet no one has really explained why Bank of America and JP Morgan have been stable while Lehman and Bear were in trouble. Morgan Stanley is not in merger talks and even the great Goldman Sachs has rumors about it flying. Why are some stable and others disappear overnight?

Crisis Coverage: FDIC Rumors

It appears today's market activity and the news regarding Merrill, Lehman and AIG has spiked an interest in my earlier post about the safety of financial institutions.  I read on the tape today that one economist was emphasizing bank failures and the possibility of the FDIC running out of the reserves used to insure deposits up to $100,000.  Let us examine this possibility from a rational perspective:

Financial Institutions- Is Your Money Safe?

The headlines have been full of bank troubles and failures like Indy Mac.  The FDIC recently stepped in to save Indy Mac depositors in July and this action is expected to cost the FDIC some $4 to $8 billion.  This is in addition to the approximately $1.2 billion in other FDIC bank rescues so far in 2008.  Given such news, it is timely to discuss how assets are protected and why you should not worry about it.