Banks still failing

WASHINGTON (AP) -- Regulators have shut down three banks in Puerto Rico and one each in Michigan and Missouri, bringing the number of U.S. bank failures this year to 62.

The Federal Deposit Insurance Corp. took over the banks: Westernbank Puerto Rico, based in Mayaguez, with about $11.9 billion in assets; R-G Premier Bank of Puerto Rico, based in Hato Rey, with around $5.9 billion in assets; and San Juan-based Eurobank, with $2.5 billion in assets.

The FDIC also seized CF Bancorp, based in Port Huron, Mich., with about $1.6 billion in assets; and Champion Bank, in Creve Coeur, Mo., with $187.3 million in assets.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP) -- Regulators on Friday shut down three banks in Puerto Rico, bringing the number of U.S. bank failures this year to 60.

The Federal Deposit Insurance Corp. took over the banks: Westernbank Puerto Rico, based in Mayaguez, with about $11.9 billion in assets; R-G Premier Bank of Puerto Rico, based in Hato Rey, with around $5.9 billion in assets; and San Juan-based Eurobank, with $2.5 billion in assets.

Banco Popular de Puerto Rico agreed to acquire the deposits and about $9.4 billion of Westernbank's assets. The FDIC will keep the remainder for eventual sale. Scotiabank de Puerto Rico agreed to buy all the assets and deposits of R-G Premier Bank. And Oriental Bank and Trust is acquiring all the assets and deposits of Eurobank. The three acquiring banks are based in San Juan, the Puerto Rican capital.

In addition, the FDIC and Banco Popular agreed to share losses on $8.8 billion of Westernbank's loans and other assets. The agency and Scotiabank agreed to share losses on $5.4 billion of R-G Premier Bank's assets, while the FDIC and Oriental Bank and Trust are to share losses on $1.6 billion of Eurobank's assets.

The failure of Westernbank is expected to cost the deposit insurance fund $3.3 billion; the failure of R-G Premier Bank is expected to cost $1.2 billion; that of Eurobank, $743.9 million.

There were 140 bank failures in the U.S. last year, the highest annual tally since 1992, at the height of the savings and loan crisis. They cost the insurance fund more than $30 billion. Twenty-five banks failed in 2008 and only three succumbed in 2007.

The number of bank failures likely will peak this year and will be slightly higher than in 2009, FDIC Chairman Sheila Bair said recently.

As losses have mounted on loans made for commercial property and development, the growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, hitting a $20.9 billion deficit as of Dec. 31.

The number of banks on the FDIC's confidential "problem" list jumped to 702 in the fourth quarter from 552 three months earlier, even as the industry squeezed out a small profit. Still, nearly one in every three banks reported a net loss for the latest quarter.

The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years.

The agency mandated last year that banks prepay about $45 billion in premiums, for 2010 through 2012, to replenish the insurance fund.

Depositors' money -- insured up to $250,000 per account -- is not at risk, with the FDIC backed by the government. Apart from the fund, the FDIC has about $66 billion in cash and securities available in reserve to cover losses at failed banks.

Thoughts

Though this was an impressive day for the bulls and the might still be looking for that 1230 on the S&P, but if they can't this is the level they must swing if they want to break the bears back from tuesday's action.

GREECE ISSUE

Downgrades

Greece now Spain. Europe seem to be in a mess. This is might be start of the failing of nations. Maybe Google will buy Greece and Spain :)

Today

As usual the days when I take off for personal stuff we get expansion days. We should get a bounce tomorrow as the TRINS ended above 2 but what is to note here is the massive volume distributed today on the downside. Are the bears back I have no idea but 1230 was my extreme measurement on the S&P and that area has yet to be pushed by the bulls.

Wait on see mode here

1200 should be resistance area

1200 should be resistance area

More banks fold

NEW YORK (AP) -- Regulators on Friday shut down seven banks in Illinois, putting the number of U.S. bank failures this year at 57.

The Federal Deposit Insurance Corp. took over four banks in Chicago: New Century Bank, with $485.6 million in assets; Citizens Bank&Trust Company, with $77.3 million in assets; Broadway Bank, with $1.2 billion in assets; and Lincoln Park Savings Bank, with $199.9 million in assets.

The FDIC also took over Amcore Bank of Rockford, which had $3.8 billion in assets; Peotone Bank and Trust Company in Peotone, with $130.2 million in assets; and Wheatland Bank of Naperville, with $437.2 million in assets.

MB Financial Bank agreed to acquire the deposits of both Broadway Bank and New Century Bank. Republic Bank of Chicago agreed to assume Citizens' deposits, while Chicago-based Harris National Association agreed to acquire Amcore Bank's deposits.

Northbrook Bank and Trust Company of NorthBrook agreed to acquire the deposits of Lincoln Park Savings Bank. First Midwest Bank of Itasca agreed to assume Peotone Bank and Trust's deposits. Wheaton Bank & Trust will acquire the deposits of Wheatland Bank.

The failure of Broadway Bank is expected to cost the FDIC's deposit insurance fund $394.3 million. For the other banks, the estimated costs are: Amcore Bank, $220.3 million; New Century Bank, $125.3 million; Citizens Bank&Trust Company, $20.9 million; Lincoln Park Savings Bank, $48.4 million; Peotone Bank and Trust Company, $31.7 million; and Wheatland Bank, $133 million.

Broadway Bank was owned by the family of Illinois Treasurer Alexi Giannoulias, a Democrat who is running for President Barack Obama's old Senate seat. The bank was heavy into real estate loans and lost $75 million last year.

There were 140 bank failures in the U.S. last year, the highest annual tally since 1992 at the height of the savings and loan crisis. They cost the insurance fund more than $30 billion. Twenty-five banks failed in 2008 and only three succumbed in 2007.

The number of bank failures likely will peak this year and will be slightly higher than in 2009, FDIC Chairman Sheila Bair said recently.

As losses have mounted on loans made for commercial property and development, the growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, hitting a $20.9 billion deficit as of Dec. 31.

The number of banks on the FDIC's confidential "problem" list jumped to 702 in the fourth quarter from 552 three months earlier, even as the industry squeezed out a small profit. Still, nearly one in every three banks reported a net loss for the latest quarter.

The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years.

The agency mandated last year that banks prepay about $45 billion in premiums, for 2010 through 2012, to replenish the insurance fund.

Depositors' money -- insured up to $250,000 per account -- is not at risk, with the FDIC backed by the government. Apart from the fund, the FDIC has about $66 billion in cash and securities available in reserve to cover losses at failed banks.

AMZN after earnings

Here is what i am looking at

The S&P 500 traded above the last key Fibonacci level (for my purposes) on an intra-day basis, but could not hold it into the close.

It's put up or shut up time for the Bulls in my opinion. If they can get above Wednesday's highs, we should see another new high pretty quickly as the SPX heads to the 1230 level. If not, and if this 78.6% Fibonacci holds, we could be on our way for a nice size pullback.

HIgher Rates ahead

Market

All this government intervention has surely helped the markets higher but with financial reforming coming intervention will be no more and the next downturn will not be bailout and will be more disasterous than 2009/2009. This is all setting up for a massive Elliott Wave 3 count. Should be exciting when it happens!!!!!

What I see

The break of the trendline sets up the 2 point, you look back for the 1, and now we wait for a matching, lower or even a higher high to set up a 1,2,3 reversal pattern

Markets

Folks knew this was out there- it is no surprise big money has not been buying this rally and it shows from the light volume. BAC almost made it to $20 but obviously all the financials are getting killed on this news. It will be very interested as what will happen with the news reports on this fraud allegation.

Another reason why the government will say we need more oversight. This will be a political topic more than any thing else.


Have a great weekend I am travelling

GS-SUPPORT HELD

78.6% Fibonacci retracement has held so far

Bingo ???

Do I get to say bingo soon on BAC- Target I said was $20 next

Here now or full retracement-

last chance for the NASDAQ Bears here, or at least the composite Bears! The NASDAQ Composite is approaching its 78.6% retracement of the push down from the 2007 highs. Should that level be breached, a full retracement is then expected.

VIX

the VIX closed at its lowest level in a few years yesterday. Does this mean that it can't go any lower? Of course not, but it puts us on guard for potential volatility expansion, something that this grinding action can surely use.

Longer Cycle

While the rally from March 2009 through April 2010 has been impressive, there are big picture, huge Head & Shoulders top patterns that are warning this is simply a Bear Market rally, the eye of the storm, a temporary respite. The rally from March 2009 has not been as long time-wise, or as strong as the decline that preceded it. So far, it has retraced approximately a Fibonacci 60 percent of the 2007 to 2009 decline. It is a Bear Market rally. Because we are in a huge Grand Supercycle degree Bear Market, rallies or bounces can seem large and long. But big picture patterns suggest all the borrowing and spending, and monetary printing by the Central Planners will only produce a temporary Bear Market Bounce at great cost to the Federal Budget Deficit. Another leg lower is likely over the next several years, and the Central Planners cannot prevent it, now the true question is when.

1230 Next strong resistance

From the chart posted last week,1230 is next strong resistance on the S&P. 1230 is the 62% Fibonacci retracement of the decline from the 2007 highs basis the cash S&P 500. All eyes will be on that number, if we indeed make it that high, which in my opinion because we are now in a structure for it to hit

What will we do when we get there? I have NO IDEA! I think we should at least pause, but after that, a reversal is not a sure thing. We will examine it when that time arrives.

I know I'm being kinda non committal but what should I do instead? Take stabs that we are going DOWN or it's time to get SHORT over and over again and just keep being wrong the markets is not going anywhere and it will be here long after we are gone, so just take it slow and steady.

Footsie

We will be playing footsie with this VERY important 1178/1180 area- I have no guesses but to say it was my point from the March 2009 lows of a potential TOP. The fact here that we over shot a little is definitely a bullish sign but be very cautious here if you are long. The volume and divergence says a topping pattern is forming

Interesting

Resistance : Baffling to technicians

So this is the important short to medium term chart- I like most technicians noted the 1178/1180 area as potential maximum move off the March 2009 lows but we have not gotten a full rejection. The next level up on the charts is 1230 the 67% Fib retracement and at that point i would expect us to be at a final topping stage but who knows. Technicians has been waiting on a pullback for months but my ultimate top was 1178/1180 so I will watch what happens here-

Oil HIgher

Well Oil finally went higher something that is a seasonal reaction of the change over to the lighter crude oil for the summer.
One thing i find funny is the talking head telling people oh everything is ok. I did a massive supercycle chart and folks last big dive in the market is definitely a Elliott Wave 1. I am 99% sure of it and that scares me because a Wave 3 will send us a lot lower, and i do mean a lot. The thing here is to coordinate some cycle time cycles to see when this can possibly happen, my money is still on 2011-2013 time frame for a massive low in the markets. I only hope I have enough resources to buy when the end of wave three happens because it will be one for the ages. Right now we are just moving on the thought we are at some economic bottom but with no real economic boom I have no doubt you have to be a great stock picker or just play it light and wait for the downturn to short.
Right here I am doing little because the light volume has me on pause. Volume is the true reflection of the market direction and till it comes back more that average, everything here is manipulation.

Have a great, Easter, spring break and weekend.

Oil Higher

Broke through the $84.20 level overnight- this is very bullish- Get ready for higher prices at the pump.