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Dozens of U.S. banks will fail by 2010: analyst
Reuters ^ | Feb 1, 2008 | Jonathan Stempel

Posted on 02/09/2008 5:48:41 PM PST by Halgr

Dozens of U.S. banks will fail by 2010: analyst Fri Feb 1, 2008 3:39pm EST

By Jonathan Stempel

NEW YORK (Reuters) - Dozens of U.S. banks will fail in the next two years as losses from soured loans mount and regulators crack down on lenders that take too much risk, especially in real estate and construction, an analyst said.

The surge would follow a placid 3-1/2 year period in which just four banks collapsed, all in the last year, RBC Capital Markets analyst Gerard Cassidy said in a Friday interview.

Between 50 and 150 U.S. banks -- as many as one in 57 -- could fail by early 2010, mostly those with no more than a couple of billion dollars of assets, Cassidy said. That rate of failure would be the highest in at least 15 years, or since the winding down of the savings-and-loan debacle.

"The initial round of failures will come from smaller banks with limited access to capital and overexposure to commercial real estate," Cassidy said.

[snip]

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Editorial; Front Page News
KEYWORDS: 2010; bailout; banking; banks; housingbubble; keatingfive; recession
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To: Halgr

My prediction is that in 2010 there will be a headline stating “Experts Surprised by...”


41 posted on 02/10/2008 3:52:33 AM PST by CzarNicky (The problem with bad ideas is that they seemed like good ideas at the time.)
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To: DeweyCA

Yes and shortly after taking office, even though he had promised to cut taxes, he announced the government was in bad shape and would need to raise taxes.


42 posted on 02/10/2008 4:30:02 AM PST by DaveArk
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To: goodnesswins; Inyo-Mono; traumer
Try this article to make your blood boil.

Cheers!

43 posted on 02/10/2008 5:25:16 AM PST by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: grey_whiskers

The “article” goes to “my comments.” ;->


44 posted on 02/10/2008 5:34:23 AM PST by Rush4U (unnamed source)
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To: Brian S. Fitzgerald

The link’s dead.


45 posted on 02/10/2008 5:37:56 AM PST by RWB Patriot
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To: Vince Ferrer

When Franklin National Bank in New York failed, (about the biggest bank to fail since the depression) around 1973 or so, it didn’t cost the taxpayers or the FDIC or big depositors a dime. Franklin National Bank closed Friday (and in the day before ATMs and weekend banking) opened on Monday as European-American Bank.

A German banking consortium took over the assets and liabilities “as is”. I can see a number of smaller banks being rolled up by the larger banks and cash rich foreigners buying up the failing larger banks. Banks actually hold very few direct mortgages, though they are invested in the paper of mortgage holding conglomerates. The idea was to diversify risk. But risk diversified became risk ignored, denied and hence the current mess.


46 posted on 02/10/2008 6:13:12 AM PST by Lonesome in Massachussets (Being an idealist excuses nothing. Hitler was an idealist.)
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To: antonia
I read that Remittances were down sharply in the last 6 months of 2007 and wasn't expected to rebound. Overall though I do agree with what you said.
47 posted on 02/10/2008 7:27:50 AM PST by rb22982
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To: RWB Patriot

links ok now


48 posted on 02/10/2008 7:31:50 AM PST by Brian S. Fitzgerald ("We're going to drag that ship over the mountain.")
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To: grey_whiskers

To what article are you trying to link? that just pulls up the my comments page.


49 posted on 02/10/2008 8:04:38 AM PST by Verloona Ti
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To: Halgr; Petronski; Toddsterpatriot

When Gerard Cassidy talks, people ask, “Who the hell is Gerard Cassidy?”


50 posted on 02/10/2008 8:09:23 AM PST by Larry Lucido
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To: lilylangtree
Like in ‘92 and 2004 when the pubs were the sitting presidents, MSM kept using “recession” and hyperinflation. I remember the day after the 92 elections when the Bubba & the RATS won the newspapers after months of failing economy talk wrote “the economy isn’t so bad after all.”

The homelessness issue also ceased to exist after the '92 election. Again, the MSM made this "problem" suddenly disappear.

51 posted on 02/10/2008 8:21:28 AM PST by Starboard
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To: Halgr

What you said is true. I have to find a way to tune out the noise and stick to the kindred spirits, who I trust.


52 posted on 02/10/2008 8:23:47 AM PST by Freedom_Is_Not_Free
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To: traumer

Yep. I would thoroughly enjoy watching BoA sink under it’s own weight of uncollected illegal immigrant debt.


53 posted on 02/10/2008 8:26:18 AM PST by TADSLOS (Estoy Juan McCain y apruebo este mensaje!)
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To: Rush4U
Try typing the link below into the URL of your browser:

http://www.businessweek.com/bwdaily/dnflash/content/feb2008/db2008026_105146.htm?campaign_id=yhoo

54 posted on 02/10/2008 10:29:47 AM PST by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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To: Halgr

How does this compare to bank failures in average times?


55 posted on 02/10/2008 10:32:43 AM PST by RightWhale (Clam down! avoid ataque de nervosa)
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To: grey_whiskers
Yup, okay, I've read this one and you are right...and it's enough for me with this "Bank."
56 posted on 02/10/2008 10:37:59 AM PST by Rush4U (unnamed source)
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To: Halgr

Dozens?

wow


57 posted on 02/21/2008 8:17:17 AM PST by mowowie
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