CNN Money Portugal bank crisis: 4 reasons to keep calm
CNN Money outlines why the Portuguese bank default is no reason to worry:
1. It's a local problem;
2. Regulators are on the case;
3. Europe is getting its act together;
4. Portugal is in better shape
It's local! We've heard the "containment" story before.
Regulators are on the case!
Just like they were in the Bernie Madoff case or in the cases of gold and silver manipulation.
Fourth Largest Bulgarian Bank to Collapse
They have identified the problem in Bulgaria as "fraud". Again, nothing to worry about - as if fraud might not apply to other banks.
The Fragile Banking System
It seems the banking system is under severe strain and it will be hard for the Fed to say with a straight face when there is a melt down that it was "unexpected". Speculation that sovereign funds and the Fed back stopped the stock markets after the announcement of the Portuguese bank default.
Fining the Too Big Too Fail Banks
The too big to fail banks now get off with fines which only go back to the Federal government. The size of the fine that Citibank has agreed to pay ($7 billion!) implies a tremendous amount of fraud - but not criminal charges.
If an individual had an enormous fine levied against him one would be safe to assume his behavior was criminal.
Trusting banking institutions given the seeming criminal behavior that they have alleged to be engaged in leading to multi billion dollar fines does not engender public/depositor trust.