Posts Tagged ‘regional bank’
Why the Banks Won’t Return Your Calls
December 9th, 2009 | 
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From a recent article on Bloomberg:
“Among 35 of the biggest regional lenders that retain TARP funds, commercial real estate and construction loans average 37 percent of total loans, compared with 9.5 percent at Citigroup Inc. and Wells Fargo & Co., the two biggest U.S. banks that haven’t announced plans to repay the government, according to data compiled by Bloomberg.”
In a word, “Oy!!”
Folks, if 37% of the loans currently on the books of regional banks are commercial real estate and construction loans… well, it’s not a good thing for the banks.
What do I mean by ‘not good’? How does wiping out 1/3 of bank capital without breaking a sweat sound?
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