Banks and lending institutions have been at the center of the US real estate storm for the last three years and it is no wonder that many of them have gotten into trouble. What surprises me is that there is an “Unofficial Problem Bank List” that now includes 644 institutions for an aggregate assets value of $326 billion. A very informative article to this effect was just published by calculatedriskblog.com and it gives full detail on which institution is in trouble and the reasons for it.
Actually it is no surprise that these banks are in trouble considering the sharp reduction of lending activity, just dropped to the low levels of 1997, and considering the staggering amount of foreclosures still waiting to come out. What is actually amazing is that many banks still manage to survive despite everything, thanks to the support funds they are getting form the government and that would be intended in promoting lending and reducing foreclosures.
But now, despite the government props, banks are actually starting to fall off the chart again, some just disappear and other are acquired by other banks and merge with it. Many of the recent additions are banks traded at the stock exchange, so the crisis is getting also to the bigger institutions.
Roberto Mazzoni
Tags: "Roberto Mazzoni", banks
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