Banking Index has shown some remarkable bounce lately from the march lows and doubled its value. Index has reached to significant point where it is due for the correction or making new lows on the index if it does not hold the 30's region.
Recently we have seen so many bottom callers and bullish case on the economy and banking industry about their stress test been passed but I really doubt on the stress test results as many banks lately have diluted their shares to attract more investors which will bring down the price of banking shares down.
I have put together the FDIC opening new offices in Florida area, What does that tell us ? My comments more banks are due to fail. Look for the list of banks failed and also more and more regional bank losses due to commercial real estate in their regions.
FDIC to Open a Temporary East Coast Satellite Office
FOR IMMEDIATE RELEASE
May 8, 2009
Media Contact:
David Barr (202) 898-6992
dbarr@fdic.gov
The Federal Deposit Insurance Corporation (FDIC) today announced it will open a temporary satellite office in Jacksonville, Florida, to manage receiverships and to liquidate assets from failed financial institutions primarily located in the eastern states.
After conducting a competitive leasing acquisition process, the FDIC entered into a short-term agreement to lease space at 7777 Baymeadows Way in Jacksonville. The decision was based on mission needs and workload.
The new office will provide facilities for up to 500 nonpermanent staff and contractors. Staffing will be based on the workload needs of this office, based on the number of closings in the eastern states, the resulting number of receiverships, and the post-closing workload.
Throughout its history, the FDIC has used these offices to keep temporary asset resolution staff closer to the concentration of failed bank assets they oversee. As the work diminishes, the temporary satellite offices are closed. Full Story
Local Banks Face Big Losses
Journal Study of 940 Lenders Shows Potential for Deep Hit on Commercial Property
Commercial real-estate loans could generate losses of $100 billion by the end of next year at more than 900 small and midsize U.S. banks if the economy's woes deepen, according to an analysis by The Wall Street Journal.
Such loans, which fund the construction of shopping malls, office buildings, apartment complexes and hotels, could account for nearly half the losses at the banks analyzed by the Journal, consuming capital that is an essential cushion against bad loans. Full Story
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