A warning from The Privateer of fallout from the F&F mother of all rescues as more banks are headed for either an insured FDIC bailout or the Fed's begging bowl window to the tune of $36 Billion. But hey, what's a mere $36 Billion compared to $5 Trillion!

"The financial system ..... has broken down." Paul Volcker September 2008:

ESL

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The US Deflationary Crash Goes Local:
US regional banks together with US insurers hold the majority of Fannie and Freddie's $US 36 Billion of outstanding preferred stock. They could be wiped out in the event of a government rescue. This means that it is not enough for the US Treasury to bail out Fannie and Freddie, all these small and mid-sized US banks will also have to be taken care of. These US regional banks are now seeing their main investments in commercial real estate contracting as mentioned earlier in this report.