| Champion Bank | Creve Coeur | MO | 58362 | April 30, 2010 | |
| Westernbank Puerto Rico En Español | Mayaguez | PR | 31027 | April 30, 2010 | |
| Eurobank En Español | San Juan | PR | 27170 | April 30, 2010 | |
| Frontier Bank | Everett | WA | 22710 | April 30, 2010 | |
| R-G Premier Bank of Puerto Rico En Español | Hato Rey | PR | 32185 | April 30, 2010 | |
| CF Bancorp | Port Huron | MI | 30005 | April 30, 2010 | |
| BC National Banks | Butler | MO | 17792 | April 30, 2010 | |
| . (Note for the first time we got Puero Rico banks failing.Data is coming on BC National Banks.(.Mo) and frontier Bank (Washington state). Their departure from earth was reported late last night and we do not have data on them) |
| Failed Banks | Closing Date of Failed Bank | Deposits Transferred to | Total Assets of Failed Bank | Total Deposits of Failed Bank |
|---|---|---|---|---|
| Champion Bank, Creve Coeur, MO | April 30, 2010 | Closed by Missouri Division of Finance, and FDIC named Receiver. To protect insured depositors, the FDIC entered into a purchase and assumption agreement with BankLiberty, Liberty, Missouri | $187.3 million | $153.8 million |
| CF Bancorp, Port Huron, MI | April 30, 2010 | Closed by Michigan Office of Financial and Insurance Regulation, and FDIC named Receiver. To protect insured depositors, the FDIC entered into a purchase and assumption agreement with First Michigan Bank, Troy, Michigan | $1.65 billion | $1.43 billion |
| Westernbank Puerto Rico, Mayaguez, PR | April 30, 2010 | Closed by Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico, and FDIC named Receiver. To protect insured depositors, the FDIC entered into a purchase and assumption agreement with Banco Popular de Puerto Rico, San Juan, Puerto Rico | $11.94 billion | $8.62 billion |
| R-G Premier Bank of Puerto Rico, Hato Rey, PR | April 30, 2010 | Closed by Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico, and FDIC named Receiver. To protect insured depositors, the FDIC entered into a purchase and assumption agreement with Scotiabank de Puerto Rico, San Juan, Puerto Rico | $5.92 billion | $4.25 billion |
| Eurobank, San Juan, PR | April 30, 2010 | Closed by Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico, and FDIC named Receiver. To protect insured depositors, the FDIC entered into a purchase and assumption agreement with Oriental Bank and Trust, San Juan, Puerto Rico | $2.56 billion | $1.97 billion |
*The large specs increased longs by 12,228 contracts and decreased shorts by 2,789.
*The commercials increased longs by 5,623 and increased shorts by 13,749.
*The surprise was in the small specs category. They increased longs by 1,417 contracts, but increased shorts by a BULLISH 8,308.
MarketVane's Bullish Consensus shed a point to 74% but the HGNSI was unchanged at 46.6%. Continuing its recent vivacity, the GLD ETF added 6.088 tonnes to 1,159.00152 tonnes, a new record.
Greek bank deposits fall
Bill,
According to Reuters, "Business and household deposits at Greek banks dropped by 0.9 percent month-on-month in March, a central bank official said on Thursday, bringing total deposit losses in the first quarter to 10.6 billion euros." So €10.6 billion went looking for a new home in Greece from January – March. No doubt the pace has quickened as the crisis grew this month, too. However, using just the Q1 figures, if just 10% of the €10.6 billion in withdrawals decided to seek a safe haven in gold, that would represent 20 tons of buying. One might also suspect a little bit of this is going on in Spain and Portugal to add fuel to the fire.
So a significant part of the current bid in gold may represent demand for bullion — a daunting proposition for market cappers and short sellers. That this demand is coming out of Europe also explains why the price of gold in Euros keeps hitting record highs.
Best wishes,
Peter R.
end.
OK lets go to the all important gold and silver inventories. As you will recall yesterday was the first day of notices to deliver.
I will go in detail what happened:
First the inventories:
SILVER
ZERO ozs withdrawn from the dealer's (registered) inventory
749, 586 ozs deposited in the customer (eligible) inventory
Total dealer inventory 50.25 Mozs
Total customer inventory 65.93 Mozs
Combined Total 116.18 Mozs
GOLD
4,000 ozs deposited in the dealers (registered) category
31,841 ozs deposited in the customer (eligible) category
Total dealer inventory 2.45 Mozs
Total customer inventory 7.73 Mozs
Combined Total 10.18 Mozs
First of all, I would like to report that the Comex at 1 am last night updated its dealer inventory
and reported that approx 1 million oz of silver have been removed from the registered and dealer inventory.
The dealer inventory, I guess, lost some of their newfound babies. The new supposed inventory levels of the dealers
rest at 50.25 million. In reality if they have 10% of that inventory they would celebrate. Silver inventories around the
world are depleting faster than a speeding bullet.
That set the stage for todays inventory number as 749000 oz were deposited into the eligible inventory
We will have to wait and see if this inventory leaves like all of the other nervous nellies witnessed during this past month.
OK lets go to the all important deliveries. Lets start with silver:
There were 1796 delivery notices issued in the MAY silver contract. The total delivery notices for the month in silver stand at 1796 or 9.0 Mozs.
These are the number of notices served and in a "short" period of time, silver will be delivered with bar number and weights attached.
Here is the open interest for the May silver:
The open interest in silver for the MAY contract declined to 3,685 contracts. These contracts must by now be 100% paid for and are standing for delivery. This is 18.4 Mozs. This is a very large amount of silver compared to the dealer inventory of approximately 50 Mozs. It should be noted that almost 22 Mozs stood for delivery in March which according to my analysis of the Comex warehouse inventory has only been partially delivered (about 4 mozs).
end.
So we can get a good idea of what will stand for the month:
The number of May silver contracts standing at May 1.2010 is 3685 or 18.4 million oz.
We must add the 2.43 million oz silver options exercised for April ( a non delivery month for silver). Thus total silver to be served for metal in May is 18.4 plus 2.43 or 20.83 or almost
21 million oz, a little drop from March. Only 4 million oz from the March silver delivery month have been settled!! Maybe the well informed insiders know that
the comex has little physical silver that can be delivered upon.
(It is very important for all to understand that the comex is really not a physical market for gold and silver. That rests with the LBMA over in London England.
That is the dominate market for physical. For those wishing physical gold, they just call up their friendly banker and deposit money and get whatever gold is available at
a price determined by the customer or at a fix price. A wealthy Greek purchaser, wishing to get out of his euros will place his money through a Greek banker who contacts a London banker.
The London banker then will take instructions as to price. Lets say the Greek investor wants 100 0z. He will place that order for 100 0z at the morning fix, or at the afternoon fix if that is the order. Depending on availability he may get filled or he may have to wait as many seek the tiny amounts coming from the mining sector and/or central bank above ground gold. He may stipulate a price and if the gold price is higher, he is out of luck.)
Lets go to gold deliveries. The month of May is a non delivery month for gold, so it is only options exercised for metal that are served upon.
Here are the totals here:
There were 705 delivery notices issued in the MAY gold contract. The MAY gold delivery notice total for the month is 705 notices or 70,500 ozs.
end.
For the first day, almost 705 notices were issued or 70,500 oz. 2,27 tonnes of gold. This is a little higher from the opening salvo 2 months ago.
end
Here is Bill Murphy of Lemetropolecafe on the potential silver squeeze:
Silver deliveries
3685 silver contracts were open as of yesterday, which means the holders of those contracts were funded and prepared to take delivery. That's 18.4 million ounces vs. 50.2 million in the "registered" - available for deliver/dealer - inventory. Not enough to cause short squeeze in physical UNLESS the fractional nature of the Comex is true. Also, some of those longs could certainly elect to tender for cash or SLV settlement.
My best guess is that BNS is taking physical delivery in order meet the demands of investors who watched the GATA/Harvey Organ events unfold.
end.
Lets go to economic news of the day:
The last day of the month is always the report on the GDP number. It showed a gain of approximately 3.4% in the quarter a slowing down of the
5.6% pace the previous quarter. However you must take these figures with a grain of salt:
Consumers shine despite slower-than-expected GDP
WASHINGTON (Reuters) - The economy grew at a slightly slower-than-expected pace in the first quarter, held back by inventories and exports, but resurgent consumer spending offered evidence of a sustainable recovery, a government report showed on Friday.
Gross domestic product expanded at a 3.2 percent pace, the Commerce Department said in its first estimate -- marking three straight quarters of growth as the economy climbs out of the worst recession since the 1930s.
Analysts polled by Reuters had forecast GDP, which measures total goods and services output within U.S. borders, growing at a 3.4 percent rate in the first three months of 2010 after a 5.6 percent growth pace in the fourth quarter.
Despite the slowdown from the prior quarter, details of the report were fairly upbeat, with consumer spending accelerating at a 3.6 percent rate, more than double the 1.6 percent pace in the fourth quarter. The first-quarter rise was the largest since the first quarter of 2007.
Consumer spending, which normally accounts for 70 percent of U.S. economic activity, added 2.55 percentage points to GDP last quarter, the biggest percentage contribution since the fourth quarter of 2006.
Business inventories increased $31.1 billion in the first quarter as businesses restocked to meet firming domestic demand, the first increase since the first quarter of 2008. Inventories contributed 1.57 percentage points to GDP, less than half the contribution in the last three months of 2009 when businesses became less aggressive in clearing their warehouses.
When businesses slow the rate at which they are liquidating inventories, manufacturers raise production and this boosts GDP. Inventories fell $19.7 billion in the last quarter of 2009.
Excluding inventories the economy expanded at a 1.6 percent rate following a 1`.7 percent pace in the fourth quarter.
Businesses continued to spend on software and equipment, though a bit less vigorously than in the prior quarter. Business investment rose at a 4.1 percent rate after a 5.3 percent pace in the fourth quarter.
New home construction, which showed some hesitancy early this year, was a drag on growth in the first quarter -- after two quarters of gains. Residential investment contracted at a 10.9 percent rate after growing at a 3.8 percent pace in the fourth quarter.
Spending on structures subtracted from GDP for a sixth straight quarter. Export growth slowed sharply to a 5.8 percent pace in the first quarter from a 22.8 percent rate in the prior period, while imports rose at an 8.9 percent rate. That left a trade deficit that chipped off 0.61 percentage point from first-quarter GDP.
end.
However this accompanied the report, a rise in employment costs from .5% to .6%.
8:30 Q1 Employment Cost Index 0.6% vs. consensus 0.5% Q4 figure was 0.5%. * * * * *
Q1 employment costs rise 0.6 percent
WASHINGTON, April 30 (Reuters) - Employment costs in the United States rose slightly more than expected in the first quarter, driven by benefits that recorded the biggest jump in almost three years, Labor Department data showed on Friday.
The Employment Cost Index rose 0.6 percent in the three months ending in March, faster than the 0.5 percent that analysts polled by Reuters had expected and also above the previous quarter's 0.4 percent rise.
Wages and salaries, which make up about 70 percent of compensation costs, rose 0.4 percent, while benefits increased 1.1 percent. That was the biggest gain since the second quarter of 2007, a Labor Department official said.
For the 12-month period ending in March 2010, compensation costs rose 1.7 percent. That was below the prior 12-month reading of 2.1 percent, suggesting overall labor cost pressures remained contained.
end.
Employment costs are a drag on the economy and make exporting of goods costlier and also make workers seek increases in wages.
Spain, Portugal and Ireland has massive problems because of huge labour costs forcing production to leave these countries to lower cost regions like Germany.
end.
The economy seems to rolling along in the Midwest and confidence numbers are improving:
US Midwest business expands more than expected
CHICAGO, April 30 (Reuters) - Business activity in the United States expanded more than expected in April, a report showed on Friday.
The Institute for Supply Management-Chicago business barometer jumped to 63.8 in April, the highest since April 2005, from 58.8 in March.
Economists had forecast the index at 60. A reading above 50 indicates expansion in the regional economy.
The employment component of the index rose to 57.2 from 53.1 in March. New orders rose to 65.2 from 61.8.
-END-
09:55 Apr final Univ. of Michigan Confidence 72.2 vs. consensus 71.0 Apr preliminary reading was 69.5. * * * * *
end.
However, here is John Williams in his ShadowGovernmentStats as he throws into question the numbers the government releases:
Jim Sinclair's Commentary
John Williams is correct. Consider subscribing.
- GDP Growth Lacks Sustainability
- Economic and Systemic Risks Intensify
"No. 294: First-Quarter GDP, Mounting Systemic Risks"
http://www.shadowstats.com
Here is an important commentary from Jessie of Jessiecrossroadscafe.com:
29 APRIL 2010
When You Lie Down With Them Dept: Morgan Stanley Has 69% Tier 1 Capital Exposure to the PIIGS
That statistic about Morgan Stanley was an eye opener in terms of percent of capital exposure. No wonder Angie Merkel is playing hard to get, holding out for more than another back rub. Morgan Stanley looks like it done slipped in the pig wallow, don'cha know.
Gentlemen, start your presses.
Bloomberg
JPMorgan Has Biggest Exposure to Debt Risks in Europe
By Gavin Finch
April 29 (Bloomberg) -- JPMorgan Chase & Co., the second- biggest U.S. bank by assets, has a larger exposure than any of its peers to Portugal, Italy, Ireland, Greece and Spain, according to Wells Fargo & Co.
JPMorgan's exposure to the five so-called PIIGS countries is $36.3 billion, equating to 28 percent of the firm's Tier-1 capital, a measure of financial strength, Wells Fargo analysts including Matthew Burnell wrote today. Morgan Stanley holds $32.4 billion of debt in the region, which equates to 69 percent of its Tier 1 capital, Burnell wrote.
"Regulatory data suggests JPMorgan's exposure is largest in aggregate, but Morgan Stanley held the largest aggregate exposure to the PIIGS relative to Tier 1 capital," the analysts wrote. Overall U.S. bank "exposure to Greece is lower than exposure to
Ireland, Italy and Spain."
Bonds and stocks plunged across Europe in the past week on concern the Greek debt crisis is spreading across the euro area. Standard & Poor's this week cut Greece, Portugal and Spain's credit ratings as concern the nations may fail to meet their debt commitments increased.
U.S. banks held a total of $236.8 billion of exposure to the five nations, including $18.1 billion to Greece, Wells Fargo said. European banks have claims totaling $193.1 billion on Greece, according to the Bank for International Settlements, with another $832.2 billion of claims on Spain.
Notes: JPMorgan has the biggest exposure to defaults of the "PIIGS" nations. JPMorgan has 36.3 billion dollars of loans to these nations and it represents 28% of their tier 1 assets.
(Please understand...this is tier 1 (good assets) as compared to tier 3 which is toxic or worthless junk)
Morgan Stanley holds a lesser amt of 32.4 billion but this total represents 69% of its tier 1 assets.
Thus a default by these nations will bring down Morgan Stanley and most likely JPMorgan who would have other problems because of credit default swaps which is not included in these figures.
Note: all the usa banks hold 236 billion dollars to these 5 nations. This should wipe out most of the usa banks reserves.(credit default swaps are not included in this figure)
Note: European banks hold 193 billion dollars on Greece alone...naturally this would wipe out all reserves at European banks.(credit default swaps are not included in this figure)
Note: take a look at the total claims on Spain of 832 billion dollars. This is from the BIS and this figure INCLUDES CREDIT DEFAULT SWAPS.
Ladies and Gentlemen: from these figures you can see a systemic diaster waiting to unfold.
Rearding the CFTC hearings of which I participated in, is the following:
Gensler got 8000 comments on the position limits regs and they are now studying them. He says the market he covers is over $600 trillion with 50% in the US. Collins also asked if the CFTC was part of the Systemic Risk Council of Regulators, which is probably the Plunge Protection Team. Collins wanted to make sure he was on that Council. I wonder what she knows about it. Clearly Durbin and Collins as well as Bond and Cochran need to be educated..
How much money annually is being fleeced from customers in the rigged silver and gold markets and how much money are shareholders losing in the GLD/SLV ETF schemes? They quote Madoff as a $50 billion scheme and Stanford as a $7 billion scheme. Seems as if they like to look at a number and the bigger the better!
Note: The senators mentioned above arre Senators, Collins, Durbin and Cochran. They seem to sense problems of a systemic risk.
Also the IMF reported that a Greek bailout cost to USA citizenry through the IMF will be in the vicinity of 100 billion dollars.
That must be added to the Federal debt once implemented.
end.
Here is a story on the huge number of foreclosures in the Illinois area. No wonder this state is in serious financial trouble:
More than 9,300 homeowners lost properties last quarter
By Mary Ellen Podmolik, Tribune reporter
April 29, 2010
More Chicago-area homeowners lost their homes to foreclosure in the first three months of the year than in any quarter in the past five years. This disturbing statistic raises doubts about the effectiveness of mortgage loan modification efforts and could put more downward pressure on property values.
Within the six-county Chicago region during the first quarter, 9,302 homes went through a court-ordered auction, the last step in the foreclosure process, and 95 percent of those properties were taken back by lenders. Within the city of Chicago, almost 3,500 homes went to auction, and 95 percent of those also became bank-owned, according to data to be released Thursday by Woodstock Institute, a Chicago-based think tank.
A portion of the increase in auctions can be attributed to various moratoriums lenders put in place during the holiday season and while they evaluated homeowners either for the federal government's Home Affordable Modification Program or their own internal programs. However, it appears clear lenders are now stepping up efforts to push properties through the foreclosure system as homeowners fail to qualify for loan modifications or default again.
More than half of all loan modifications fell 60 days or more past due by nine months after the initial modification, the federal Office of the Comptroller of the Currency said in a report last month on fourth-quarter mortgage performance.
Lenders "put a halt on the process, but did it help [borrowers] in the end?" said Geoff Smith, Woodstock Institute's senior vice president. "Are these foreclosure prevention programs working? If HAMP was working, you'd have less completed foreclosures. More people lost their homes. That's undisputed."
end.
Many commented to me that I should balance the financial problems equally between European countries and the USA individual states.
You are so correct. Here is a commentary that shows 33 out of 50 usa states are totally bankrupt: (from Jim Sinclair commentary.
The following discusses the huge problems in New York Sate with its budget deficit.
The author is Bon Hennelly of Western New York News Room:
Jim Sinclair's Commentary
33 states of the USA are headed for bankruptcy.
Ravitch: New York Deficit Could Swell to $15 Billion Next Year
by Bob Hennelly
NEW YORK, NY April 29, 2010 —New York's $9.2 billion budget deficit is expected to balloon to $15 billion next year, according to Lt. Gov. Richard Ravitch.
Speaking to a midtown audience of real estate developers, Ravitch said he does not expect the state to reach a budget deal any time soon, despite the state's desperate fiscal situation. The budget is nearly one month late and Ravitch says there are no external triggers forcing lawmakers and the governor to act.
"States can't go into bankruptcy. They are not included in the bankruptcy code," he says.
Today's outlook is different from the city's fiscal crisis of the 1970s when the state couldn't find any lenders. Instead, he says, bankers are circling Albany with tempting offers.
"The financial community is ready to lend the state all kinds of money. They have 20-odd schemes they are suggesting about how the state can borrow money," Ravitch says.
end.
I am surprised that CNN covered this:
Protesters descend on Wall Street, New York City banks
By the CNN Wire Staff
April 30, 2010 12:48 a.m. EDT
New York (CNN) — Protesters rallied in downtown New York City Thursday to voice their anger over what they perceive as the roles Wall Street and big banks played in America's economic crisis.
Marching from City Hall to Wall Street, the protesters chanted "good jobs for all," and held signs with messages including "Hold banks accountable," "Make Wall Street Pay," and "Reclaim America."
Marching from City Hall to Wall Street, the protesters chanted "good jobs for all," and held signs with messages including "Hold banks accountable," "Make Wall Street Pay," and "Reclaim America."
The AFL-CIO organized the rally, and union President Richard Trumka addressed the crowd, saying, "How long will we allow the spirit of greed to continue to drive us into economic holes?"
The National Action Network, a group that was involved in organizing the protest, said in a news release that demonstrators represented unemployed workers, foreclosure victims and community activists.
Protester Gerard Pettine said he just wants Wall Street to be held accountable for its involvement in the economic collapse.
GM Under Fire for 'Misleading' Bailout Ad
GM CEO Boasts TARP Repayment in TV Commercial; Critics Say Money Came From Other Bailout Funds
By MATTHEW JAFFE and ALICE GOMSTYN
April 30, 2010
The Obama administration is concerned about a new General Motors commercial in which the bailed-out automaker touts last week's repayment of the remaining $4.7 billion that it owed to the government from funds it received under the Troubled Asset Relief Program.
In the commercial, the automaker's CEO, Ed Whitacre, boasts that it has repaid its "government loan in full, with interest, five years ahead of the original schedule."
That sounds great, but that's not exactly true, warned Sen. Susan Collins, R-Maine, Thursday.
At a Senate subcommittee hearing, Collins told Treasury Secretary Timothy Geithner that the ad seems "very misleading," citing bailout watchdog Neil Barofsky's comments that GM had simply used one pot of bailout money to repay another.
