Distressed Investors Predict 200 Bank Failures This Year

Fourteen banks failed in the US over the course of the first seven weeks of this year, which would put the pace at 100 for the year.  However, distressed investors think the pace is going to pick up with 200 banks failing over the next twelve month, and total bank takeovers ultimately exceeding 1,000.  With Option ARM loans set to come due, things are just getting started!

I’ll try and get some numbers for Europe, but the failure rate should be lower if previous trends hold up.

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One Response to Distressed Investors Predict 200 Bank Failures This Year

  1. Jon Winick says:

    I would simply add that there are approximately 8300 banks + thrifts and credit unions, which is much greater than Europe. The US banking system is far less consolidated than Europe’s. Ironically, it is the largest banks in the US that are the most troubled.

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