"FDIC Approves the Assumption of all the Deposits of Douglass National Bank, Kansas City, Missouri" Jan 25. And the closure begins.
As home owners get foreclosed or walkway from their mortgages, NPL will escalate in rather small scale (each home in the US average 200K or so -- California is around 400K). As commercial debts go NPL (especially commercial real estate or CRE, like building and apartment owners), things will go bad real quick since these loans are multi-million or billions of dollars and most banks don't have that kind of cash lying around. Small banks which bet the farm on real estate (especially developers and large building owners) will fail first but don't count out the large ones since they have other loan problems (like pier loans).
Copyright 2008, DannyHSDad, All Rights Reserved.
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