The number of US banks at risk of failure is at a 15-year-high while the Federal Deposit Insurance Corporation fund protecting depositors is at its lowest level since 1993, according to the FDIC.
This will mean even more money that Bernanke will have to pump into the system to prop them up, so that they become attractive for Carlyle Group and company to swoop in and buy on the cheap.
The number of “problem banks” has risen from 305 to 416 during the second quarter, the FDIC said. The FDIC does not name the lenders on the “problem list” but said that total assets of that group had increased from $220 billion to $299.8 billion in the three months through June.
I caught part of the FDIC press conference yesterday on C-SPAN. They have enough cash to do 4.5 BankUnited deals, where they provide a $4.9 billion subsidy.
ReplyDeleteThat won't last long with a list of over 400 at risk banks.
Carlyle's banking partner John Kanas said "We'll lose 1000 banks the next two years."
ReplyDeletehttp://www.gulagblog.com/?p=3134