Posted on 01/30/2010 6:29:16 AM PST by TigerLikesRooster
Moneynews
S&P: Real Estate Losses Put U.S. Banks at Risk of Downgrades
Fri, 29 Jan 2010 02:40 PM
Commercial real-estate losses could erode capital at U.S. banks, and ongoing government support may be necessary, especially if the economy worsens, Standard & Poor's says.
"We also believe that the combination of elevated credit costs, higher capital requirements, and weak earnings could result in additional bank downgrades in 2010," the rating agency said in a report.
Banks' earnings are an important source for replenishing capital worn away by credit losses.
However, the mortgage and investment banking revenues that supported earnings during the first three quarters of 2009 may not be as reliable in upcoming quarters, S&P said.
New bank fees, including one proposed by President Barack Obama on Jan. 14, "have the potential to dampen bank earnings for some time," S&P said.
(Excerpt) Read more at moneynews.com ...
P!
Just let the bad debt fail damnit.
this shows the utter vacuity of obama, to tax the profits the banks (and outr economy) need to grow and buffer themselves against the bext phase of real estate bubble to come- soon
eating seed corn does not increase the crop and leads to starvation in the next harvets season! D’OH!
Let me guess, the US government forcing banks to give home loans to people who couldn’t afford them, all in the name of mythical ‘redlining’, is still a very bad deal for America’.. ?
And about that ‘home loans for illegals’ program, how is that working out for you now America?
I am shocked I tell you shocked. Shocked that Barney Frank and Chris Dodd would allow such a thing.
Fifteen banks have failed in 30 days so far this year. A bank failure EVERY OTHER DAY! Never let a crisis go to waste, 0bama!
Jerk.
Did you see any clips of 0bama at the GOP weekend? What a PETULANT child! My 22 year old is more mature than that. What have we done?!?!?
I mean if someone out there can enlighten me, please feel free but I just don't see how logically one can make the argument that because my house is worth less and less I owe the bank some money. Yet that is exactly what is happening. If there was a gun involved in all this it would be called “armed robbery” but since it is just the gummint it is supposed to be OK and since there is a bozo in the White House that is calling for it we are supposed to just let it happen?
That could be said of about 90% of everything the Federal government has done for most of the last century.
Someone has already forecast 200 bank failures in 2010...are we on schedule? (maybe a little ahead of schedule, eh?)
I’m predicting only 186 bank failures. But then, I’m an optimist, LOL! :)
The only thing that you missed in all of this is that previously the the FED created easy money (inflated the economy) so that the banks,brokers,developers,appraisers,charge a little fee here and there racket could rig the market and run up the prices so that you had to buy your house when it was worth more so that you owed even more to the bank when it became worth less, i.e worth what is is worth in a market which is less rigged than it was.
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