Analysts Say More Banks Will Fail

This is really serious...judging from the below report...


Monday July 14, 11:35 pm ET By LOUISE STORY


As home prices continue to decline and loan defaults mount, federal regulators are bracing for dozens of American banks to fail over the next year.


But after a large mortgage lender in California collapsed late Friday, Wall Street analysts began posing two crucial questions: Just how many banks might falter? And, more urgently, which one could be next?


The nation’s banks are in far less danger than they were in the late 1980s and early 1990s, when more than 1,000 federally insured institutions went under during the savings-and-loan crisis. The debacle, the greatest collapse of American financial institutions since the Depression, prompted a government bailout that cost taxpayers about $125 billion.


But the troubles are growing so rapidly at some small and midsize banks that as many as 150 out of the 7,500 banks nationwide could fail over the next 12 to 18 months, analysts say. Other lenders are likely to shut branches or seek mergers.

And the government may have fewer failures than in the past because private investment funds might buy some troubled lenders. Regulators are considering rule changes that would allow private equity firms to buy larger shares of banks, and several prominent investors, like Wilbur Ross, have raised funds to leap in.

for more detail readings...


http://biz.yahoo.com/nytimes/080714/1194794604123.html?.v=17


My concern over here is...

Shares of US mortgage finance giants Fannie Mae were in a freefall Friday on heightened concerns the trillion-dollar firms may face insolvency or a government takeover.




Now with pictures in all papers and articles.....ermm why of all display FannieMae ??? sound like...haha

If you ask me, yes it isnt "Funny"!! haha