Subtle Rantings

About one month ago Federal Reserve Chairman Ben Bernanke made the following statement:

The Fed chairman also said that major banks and Wall Street firms are likely to report more sub-prime mortgages write-downs, but is not concerned about a string of failures. Banks entered the current downturn with sufficient capital and have been able to raise additional funds.

“Certainly all the banks we supervise remain at strong capital positions and we don’t see any imminent risk of any insolvency.”

Source: MoneyWeek

Bear Stearns was worth about $20B at the end of 2007. They were purchased for $236M.

It’s going to get much worse.

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