Future of Banks

[dimetime]

Over the last several months banks have been finding themselves in the center of a financial tempest which has left the experts in the industry as well as the consumers wondering what will come next.
The collapse of Washington Mutual which lead to the sale to JPMorgan Chase, if this reveals anything at all it is that reguardless of how big a bank is, they can still fail. This strengthens the banks which are already stronger, for they are the ones that aquire the weaker ones.
This year alone there have been 13 institutions which have gone under. This of course includes Washington Mutual. Washington Mutual was ranked as being the biggest in U.S history. Though Analysts and Industry regulators both say that this problem will only continue to grow as the housing market continues to fall and due to the weak economy.When it comes to business failure is just one of the many parts and this includes banks. Though with the addes panic of the industry this has caused more complications and investors are beginning to bet on which is the next bank to fail.
Due to speculation of trouble for bank gaints Wachovia as well as Cleveland based National City they have lost over a quarter of their value.
Even though both of these companies have had losses for the beginning two quarters of the year, and do expect losses for the remainder of the year all because of bad mortgages.
Banks are fearing a run ( which is when the customers pull their money out) because of the stock price being driven down.
Analysts say that if Congress can manage a bailout plan which would remove troubled assets from the banks books across the country several institutions of all different sizes can actually be saved.Though as of right now the only lifelines these institutions have are the possibilities of mergers.
Hopefully soon Congress will step in and find ways to help our economy recover.

[moneysense]

In the past couple of weeks, many of the people around here have commented about taking their money out of the banks. They are afraid that the banks will close down and they will lose their life savings. And, I dont blame them a bit for being worried.

Bush is wanting a$700 billion dollar bill passed because he says if it isnt passed soon, that the failure of the bill could lead to retirement funds going down the tubes.

People are really starting to become worried about their futures and their money, so something needs to be done and soon.