Bondsquawk links to a video of Elizabeth Warren, chairwoman of the Congressional Oversight Panel for the TARP, talking about the U.S. banking industry.
Highlights include:
- 101 small banks have not paid their TARP dividend which is sign that’s there’s still a “great deal of instability in the banking system”.
- Three thousand out of eight thousand banks have serious concentration in commercial real estate. 6 out of 19 stress tested banks have commercial real estate that exceeds tier 1 capital.
- Does not look like a problem that’s going to get smaller over the next couple of quarters. It looks like a problem that is going to increase.
Bottom line? Expect more failures in the coming years from the small to medium-sized banks throughout the country.
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