Banks are failing throughout the world…but lets get to the bottom of the page, help is on the way!
Joe Schmo wrote: “Yes, we will have fewer banks after the recession is over, but fewer more risky blood sucking banks.”
Oh boy…But wait…keep on reading this is serious stuff…
No, its not a pretty picture in Europe either
Seven of Europe’s 91 largest banks could not survive an unexpected decline in economic growth or a sharp deterioration in the value of European government bonds.
And what about our home Turf—USA
This just in:
103 bank institutions are forced to close in the wake of the financial crisis.
Friday evening, July 23, 2010, the FDIC announced seven more bank failures, bringing the totals to 103 so far this year and 270 since 2008. The seven banks closed had collective assets of $2.16 billion and deposits of $2.02 billion.
Their closings cost the FDIC an estimated $431 million, about 21% of deposits. So far this year, bank closings have cost the FDIC an estimated $18.5 billion.
Five of the seven closings were accomplished with the FDIC entering into loss-share agreements with the acquiring banks. That means, in effect, that the FDIC makes a guarantee to the acquiring bank that assets it has taken over from the failed bank will not decrease in value beyond a pre-agreed limit.
In connection with those five closings this week, the FDIC entered into loss share agreements covering an additional $1.25 billion in assets. So far in this crisis, the FDIC has entered into loss share agreements covering about $180 billion.
Once again, these failed banks demonstrate the tremendous impact of the housing market distress nationwide!
So you guys, I’m moving to Mars next week, if you have any boxes…
But wait a minute…
Having said that, I called the American housing market ridicules yesterday, it’s only fair that I point out “there’s a surprising rebound in the hardest-hit markets,” said Brad Hunter, chief economist with the consultant Metro study. “People are buying again.” From the recession’s lows, construction has nearly doubled in Las Vegas, Phoenix and Tucson. It is up 74 percent in inland Southern California and soaring in Florida. Oh, I get it! So, now were building new homes. Bankrupt the old ones, buy new ones, but with the bank situations failing, who’s gonna’ carry the mortgages…Oh, its free you say?
Hold off the boxes! I’ll just take a rain check on Mars!