SubscribeRBC Says 1000 Banks May Fail
As many as 1,000 U.S. banks may fail in the next three to five years, almost double the one-year tally at the height of the saving-and-loan collapse, as losses mount on commercial real-estate loans, RBC Capital Markets analysts said.
Most of the failures will probably occur at banks with less than $2 billion in assets as their commercial customers default, said Gerard Cassidy, an analyst at RBC, in an interview today.
My comment: Quite a bit of the banking system is insolvent. It is apparent to me at this point that they have no idea how big the problem is or how to deal with it. My guess is they will continue to throw money at it and hope for the best. Should be good for gold.
“There are billions of dollars of losses embedded in the system, and the system has to flush them out,†Cassidy said. “The people that are going to take the losses are the taxpayers and bank stockholders, and if regulators say there won’t be much loss to taxpayers, they will be lying.â€
John Polomny
The Real Deal
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