Hi Everyone,
Here are the answers to the questions that came up in class today:
Here is the famous Texas Ratio predictive method for determining if a bank will fail and here is a list of banks and their Texas Ratios.
Late this afternoon a video was released of Elizabeth Warren, head of the Congressional Oversight Panel, giving us an assessment of how the TARP funds are being used. She gave a brief talk about the bank stress tests we talked about at the beginning of class. This video is short and worth your time. Elizabeth does a great job of explaining the banking problems in easy to understand language.
Here is a link to the list of state-chartered banks on the DFI website.
Here is the story about possible shadow inventory of REO homes hitting the market in a wave.
Here is Nouriel Roubini (one of the economists who correctly predicted the real estate bubble, it’s collapse and the financial crisis) going head to head with the CNBC reporters.
I’ll be seeing several of you soon! I hope you all have a great week and thanks for a fun class.