820 banks shut down in by US regulators after global economic crises ??? Do you know the reasons ???
1) Banks have been especially hurt by failed real estate loans, both residential and commercial.
2) Banks that had lent to seemingly solid businesses are suffering losses as buildings sit vacant. As development projects collapse, builders are defaulting on their loans.
3) Smaller banks are more vulnerable to the losses than their bigger Wall Street counterparts, because commercial real estate makes up a larger portion of their portfolio. If the economic recovery falters, defaults on the high-risk loans could spike.
4) Many regional banks hold large concentrations of these loans. Banks face as much as $300 billion in losses on loans made for commercial property and development, according to a report issued last week by the Congressional Oversight Panel, which monitors the government's efforts to stabilize the financial system. The report said the defaults could crimp lending and caus ...more