Analysts Predict the Downfall of Several American Banks Over the Next Year
While real estate prices continue to decline and loan defaults pile up, federal regulators are expecting the downfall of dozens of American banks over the next year. Though it has not expected to be as bad as the savings-and-loan crisis, problems are growing rapidly that small and mid-sized banks are expected go under within the next 18 months. Other lenders are either looking to shut down branches or seek mergers with the bigger fishes.
Though larger institutions such as the Citigroup or Merrill Lynch are in no immediate danger, most are still expected to report billions in write-offs. However, many are still jittery following federal regulators’ seizure of IndyMac Bank, one of the largest savings and loans in the US, with about $32 billion in assets. It was the biggest US lender to fail in more than 2 decades. Moreover, IndyMac was not even in the government’s troubled bank list this spring.
Tags: bank failures, fannie mae, FDIC, freddie mac, IndyMac, real estate crisis
