Following the FDIC’s takeover of IndyMac on July 11, widely followed blogs were speculating on bank runs on some of California’s largest banks based on nothing more than people waiting for their branch to open or large deposits moving between financial institutions.
The FDIC plans to pay closer attention to the blogosphere in the future.
(Article here.) So we’re not allowed to say that Wachovia and WaMu are lousy credit risks? Or that Italy is a shameful excuse for a sovereign credit? Or that… hang on, someone’s at the door, I’ll be right back.
Update: Don’t worry, it was just the pizza guy. Anyhow, what was I saying about WaMu? Oh yeah, they’re a lousy credit risk, and there’s a run on the bank going on.