The Power Players in the Financial Crisis

A total of fifteen banks have closed across the country this year not including other financial institutions such as AIG, Merrill Lynch and others. Americans are frantic about the safety of their money in banks and investment accounts. Many Americans have closed their bank accounts due to the current financial crisis and bank failures.

Luckily for the rest of the country all Americans have not taken their money out of the banks because the entire banking system would fail. In life there are always ups and downs. Right now individuals and the country are experiencing a huge down. Several people, companies and other entities had a role in the current financial crisis the country is experiencing. No one person or entity is to blame; however several entities can be identified as contributing or having a role in the current financial crisis. The following is a list of the power players in the current financial crisis.

1. AIG – bailed out by the Federal Government who will get an 80% stake in the company
2. Bank of America – bought Merrill Lynch in September 2008 and purchased Countrywide
3. Bear Sterns – bought by JP Morgan
4. Citigroup – tried to buy Wachovia
5. Countrywide – bought by Bank of America
6. Fannie Mae – taken over by the government
7. Freddie Mac - taken over by the government
8. Federal Reserve – passed 700 billion dollar bailout plan to boost the economy
9. Goldman Sachs – now regulated by the Federal Reserve and is able to access the it's emergency loan program
10. IndyMac – seized by the FDIC in July 2008
11. Lehman Brothers – filed for bankruptcy in 2008
12. Merrill Lynch – bought by Bank of America
13. Morgan Stanley – Federal Reserve allowed the bank to change its status to allow it to provide commercial banking products and services
14. Wachovia – purchased by Wells Fargo
15. Wells Fargo – bought Wachovia after Citigroup announced it would buy Wachovia's banking business

To ensure you make it through the current financial crisis which will probably continue until the end of 2009 or early 2010 - follow these 3 tips:

1. Keep your money in the bank. It not the timing of the market, it's the time in the market. Although you may have lost money in your savings or investment account, if you wait it out, you will gain back the money lost, however, it will take time. You can consult a financial advisor to see what options are available to you to protect your remaining money from additional losses.

2. Don't make decisions based on emotions. Don't make any drastic changes based on the recent news story, an article in the newspaper or something you heard someone say. Write down your concerns and do research, try to find and talk to others who have been through financial crises such as the Depression or a war. Wait a few days and develop some if-then scenarios and develop a plan to deal with those situations. Talk to a financial counselor or advisor about your concerns and options on how to implement your plan.

3. Change your spending habits. Now is the time to make changes in your spending habits. Find small ways to cut back on spending and reduce expenses. Start saving or save more than usual to create an emergency fund to cover bills for at least 3 to 6 months which will help when unexpected situations or expenses arise.