Triple-Trouble for Banks

FDIC: Assets at Troubled Banks UP 200%
Last Quarter Alone!

Sharon Parker-Daniels President Weiss Capital Management, Inc.

The Federal Deposit Insurance Corporation (FDIC) keeps a "problem list" with the names of 117 banks and lending institutions on it.

These are the Banks Considered
Most Vulnerable to Potential Failure

Here’s the problem: If you want to review the "problem list" to make sure your bank is NOT on it, sorry... you’re out of luck.

The FDIC keeps this list strictly confidential, for fear of sparking a run on these "problem" banks. In fact, this list is probably the best-kept secret in Washington.

Expect the Credit Crisis to Get Worse
with More Bank Failures Ahead

Our own research here at Weiss Capital Management confirms more trouble ahead for big banks and brokers. We expect banks and brokers to post steeper losses, and we see more bank failures ahead.

Editor's Note: Click here now for your FREE Weiss Managed Treasury Kit

In the latest issue of our Investor’s Quarterly newsletter, we wrote:

"Depressed home prices will lead to billions more in mortgage loan defaults and home foreclosures, which in turn will keep the beleaguered financial sector under intense pressure."¹

Today’s Financial Crisis Shaping Up to be Worst Since Great Depression as Losses Pass the Half-Trillion Mark...

Today’s financial and banking sector crisis will almost certainly eclipse the S&L debacle by orders of magnitude. Consider this:

• Global banks and brokers have so far suffered losses and asset write-offs of about $500 billion — and still counting.²
  
  
• These staggering losses already amount to more than four-times the size of the entire Savings & Loan crisis of the 1980s!³
  
  
• According to the Federal Deposit Insurance Corporation, total assets in the nation’s “troubled banks” just surged 200% in the second quarter alone -- to $78 billion in at-risk assets!⁴

It’s crucial as the credit crunch gets even WORSE, that you make certain your keep-safe money is well protected.

Depositors line-up outside an IndyMac branch, worried about the return OF their money... Source: Wall Street Journal, 7/14/08

This means you should take a closer look at the bank or money market fund where you maintain deposits. Remember, the FDIC’s coverage of your deposits is LIMITED. According to the FDIC’s own data, there are about $2.6 trillion in uninsured deposits sitting in U.S. banks.⁵

So it’s vital that your FDIC-insured bank accounts are sized within the limitations and titled correctly.

You can read more about deposit coverage by visiting the FDIC website. Many clients I speak to today are worried about more bank losses and failures ahead. If you're one of them, you should know that there are alternatives you can consider for your keep-safe money.

Here’s One Investment Alternative You Should Consider…

One of the most secure ways to invest your cash in turbulent financial markets is to stick with U.S. Treasury securities, which are direct obligations — and backed by the full-faith and credit — of the U.S. Government.

Editor's Note: Click here now — we'll RUSH your free Weiss Managed Treasury Kit

Unlike FDIC insurance, there is NO LIMIT on the Government's backing of its obligations — regardless of how much you have invested.

U.S. Treasuries are considered a virtually risk-free investment, especially in times of credit market panic. Indeed, most financial industry experts, with the exception perhaps of bankers who are trying to attract deposits, would agree that direct guarantees of the U.S. Treasury are actually stronger than the guarantee of the Federal Deposit Insurance Corporation.

There is No Limit to Uncle Sam's Backing

The reason is pretty obvious: over a thousand bank and S&L failures over the last 30 years have caused inconvenience, disruptions and in some cases, outright losses for individuals and businesses.

In contrast, there has never been a default on U.S. Treasury securities ... even when fiscal budget disputes have temporarily shut down government operations.

Besides, it is ultimately the full-faith and credit of the U.S. Government that backs the FDIC. So why not go directly to the source — investing in U.S. Treasury securities. In my view, investing in Treasuries is a great alternative to CDs and money market funds.

All things considered, U.S. Treasury securities offer investors one of the best safe-haven investments in uncertain times. That's why nearly 18 years ago, Weiss Capital Management, a Registered Investment Adviser, launched a special strategy that invests primarily in these securities.

Introducing: The Weiss Managed Treasury Program

This professionally managed investment program is one investment option that's worth serious consideration. The Weiss Managed Treasury Program aims to preserve your capital while seeking higher levels of current income than you'll find in most money market funds or bank CDs.

Today's headlines remind us that, even with investments once considered "ultra-safe," it is still possible to lose money, and this holds true for the Weiss Managed Treasury Program, as with any other investment.

However, the Weiss Managed Treasury Program is specifically designed to reduce your risk by featuring a conservative strategy that invests in U. S. Treasury securities, and a money market fund (the Weiss Treasury Only Money Market Fund⁶) that also invests mainly in U.S. Treasuries.

If you're looking for a higher level of income than some money market funds or bank CDs provide, not to mention the safety and security inherent in U.S. Government obligations, then you may want to take a closer look at the Weiss Managed Treasury Program.

U.S. Treasuries are one of the highest-quality investments in troubled times, and that's the central focus of this managed strategy. I urge you to take the steps necessary to protect your keep-safe money from today’s financial crisis.

If you have $250,000⁷ or more to invest and have been searching for a solution that offers you an extra layer of professional investment guidance to help protect your wealth from credit-market chaos — send for your FREE Weiss Managed Treasury Kit today by calling 800.814.3045. For even faster access, Click here now...

*Weiss Capital Management is an SEC Registered Investment Adviser and Weiss Research is a separate but affiliated publishing company. Both entities are owned by Weiss Group, LLC.