US economy

Banquo spent Thanksgiving in the US. Where else?

And the most popular Thanksgiving parlo(u)r game this year? “Have you bought a bank yet?”

With hundreds of banks and thrifts still sinking, the FDIC is going to stay busy in 2010. If you are of good standing and can scrape together an equity cheque (or “check” over there), the FDIC has banks and thrifts which could be yours by Christmas. Banks of all sizes in almost every state of the Union.

And don’t worry too much about those bad loans on the balance sheet, Sheila Bair, FDIC chairman, will take 80 per cent of the expected losses, rising to 95 per cent if losses are higher than expected. Prices are reduced for quick sale, which makes purchasing a bit like a lucky dip.

Little opportunity for you to prod and poke your potential purchase but with Sheila on hand to send you an early rebate cheque and wear (most of) the downside, no wonder everyone wants a bank in their stocking this holiday season.

Banquo is still an active investor so will declare his financial interest where appropriate in any blog post.


This blog is no longer updated but it remains open as an archive.

Banquo has spent more than 20 years in investment banking and the hedge fund industry, splitting his time between London, New York and Geneva.

Why is Banquo anonymous? Because he operates at a senior level across the financial markets, advising and investing, buying and selling, hiring and firing. He's still in the game but if he has a relevant financial interest in the subject of his posts, you'll know about it. Being anonymous keeps things simple. Banquo will never betray a confidence although he is privy to many.

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