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How Many More Banks Will Collapse In The Next 24 Months?
November 21, 2009 by Neil · Leave a Comment
Estimates for bank failures range from “a few hundred” to “1200″, according to banking experts in an American Banker interview. These candidates for failure are small and regional banks that are especially vulnerable to their local real estate trends. According to the Tote Board on Multifamily Investor’s homepage (based on public records), 123 banks have failed this year alone. The Deposit Insurance Fund (read: taxpayers) has shelled out almost $32 billion to cover losses. This is not to be confused with the aggregate amount of deposits in these financial institutions, a much larger sum.
If Uncle Sam, by way of the FHA, is providing easy credit, and downpayment money, expect further waves of residential defaults. This portends only more bad news for multifamily owners, who pine for rising rents and declining vacancy rates.
Our U.S. Bank Failure Tote Board reels will be spinning quicker than Erich Brenn’s plates on the Ed Sullivan show.
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