New York Times
As home prices continue to decline and loan defaults mount, federal regulators are bracing for dozens of American banks to fail over the next year…troubles are growing so rapidly at some small and midsize banks that as many as 150 out of the 7,500 banks nationwide could fail over the next 12 to 18 months, analysts say. Other lenders are likely to shut branches or seek mergers. “Failed banks are a lagging indicator, not a leading indicator,” said William Isaac, who was chairman of the F.D.I.C. in the early 1980s and is now the chairman of the Secura Group, a finance consulting firm in Virginia. “So you will see more troubled, more failed banks this year.” And yet IndyMac, one of the nation’s largest mortgage lenders, was not on the government’s troubled bank list this spring — an indication that other troubled banks may be below the radar. More
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July 14th, 2008 at 1:51 am
[…] Finance, Economy-Business News, Stock Market wrote an interesting post today onHere’s a quick excerptNew York Times As home prices continue to decline and loan defaults mount, federal regulators are bracing for dozens of American banks to fail over the next year…troubles are growing so rapidly… [[ This is a content summary only. Visit my website for full links, other content, and more! ]] […]