Larry MacDonald submits: “The risk of a full scale run on U.S. banks … is all too real,” states Nandu Narayanan in his July commentary. Narayanan has a PhD in finance from the Massachusetts Institute of Technology and is a hedge fund manager whose fund, CI Global Opportunities Fund, has gained over 75 per cent year-over-year thanks to short sales on U.S. financial stocks. The Federal Deposit Insurance Commission [FDIC] currently has reserves of $53 billion (U.S.) to compensate bank customers for lost deposits in the event of a bank failure. About ten percent of these reserves will be needed to pay off depositors at failed Indymac, leaving at best no more than $50 billion in the FDIC kitty, remarks Narayanan. Complete Story » ...
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Larry MacDonald submits: “The risk of a full scale run on U.S. banks … is all too real,” states Nandu Narayanan in his July commentary. Narayanan has a PhD in finance from the Massachusetts Institute of Technology and is a hedge fund manager whose fund, CI Global Opportunities Fund, has gained over 75 per cent year-over-year thanks to short sales on U.S. financial stocks. The Federal Deposit Insurance Commission [FDIC] currently has reserves of $53 billion (U.S.) to compensate bank customers for lost deposits in the event of a bank failure. About ten percent of these reserves will be needed to pay off depositors at failed Indymac, leaving at best no more than $50 billion in the FDIC kitty, remarks Narayanan. Complete Story » ...