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[112233]

The moral of this sad story is that when a bank looks smarter than everyone else in a given market that often means that there is something amiss with the business model choices being made by management.

http://seekingalpha.com/article/71013-welcome-to-the-subprime-dead-pool

on a side note .. the collapse of fremont general would be the biggest bank failure in 20 years. we have about 1 month to find out if this comes to past (the FDIC has given them a 60 day ultimatum to raise more capital or sell itself)

[brianguy]

yeah, I used to have deposits at my local Lincoln Savings until they went under when I was 11-12.  ahh those were the days     great bank to be honest, maybe best I've ever used.  that whole junk bond thing aside.

btw I like how the Fed told Fremont to get an influx of more money or see ya, but their savings and CD rates are nonexistant.  I suppose their only salvation will be borrowing other banks, or if somebody buys them, or (unlikely) from the Fed themselves.

Edit:  Right after I posted this, I see a large ad in the local Business section of the newspaper from Fremont declaring 6-month jumbo CD rates at 3.40% APY and MMA at 3.25% APY.  so guess I spoke too soon.  still not sure how much it'll help... but it's there.