This is not a good time to be a bank;especially one of the ones deemed to be not ”too big to fail.” In fact, more and more of the banks small enough to go belly-up are doing just that.
As the Feds took over three more small banksFriday, the number of bank failures for the entire year now stands at more than 100 and that is a greater number than at anytime since 1992 on the heels of the infamous savings and loan debacle. Then, 181 banks flopped. So far, this year, the figure is 106.
The worst part is this: the worst may still be yet to come as people remain out of work and more homeowners face foreclosure…all meaning an even rougher time ahead for the smaller community banks whose bread and butter is local real estate development and consumer loans and credit cards. All areas in distress right about now.
Nice that the government bailed out Chase and Bank of America and Goldman and…..on and on and on.
But most banks in the country are smaller–or smaller ones–and they are still terribly exposed with no real relief in sight from Washington.
For More Commentary, Please Visit www.notimetothinkbook.com, The Official Website For THE Media Book Of 2009, No Time To Think, Soon In Paperback Edition
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