Peter Pays Paul

WASHINGTON Reuters – The number of problem U.S. banks and thrifts jumped in the third quarter to 171, from 117 at the end of the prior quarter, marking the highest level since the end of 1995 and adding to expectations that more banks will fail, regulators said on Tuesday.

It looks like we are not out of the rough yet.

U.S. problem banks rise to 171 at end of third quarter: FDIC: Financial News – Yahoo Finance.

Is this part of an insidious plan to force the Middle East to kowtow to the U.S. by having them throw money after companies swirling around the drain?

Saudi Prince Alwaleed bin Talal plans to support Citigroup by upping his stake in the bank, but news of the modest increase may not be enough to revive weary investors' confidence.

Royal Treatment Can’t Save Citi – Forbes.com.

The WSJ.com is reporting that the banking bailout is luring thousands of banks to apply for some of the $700 billion the government is handing out.

Why are the banks lining up for the funds?

Now institutions across the U.S. worry that if they don’t try for the money, the market will judge them as too unhealthy to qualify, or lacking the savvy to deploy cheap government capital on acquisitions and investments.

Is this what the government had in mind when they intervened in the banking system?

Rescue Cash Lures Thousands of Banks – WSJ.com.