Global Banking Directory 2.0
Press Release Distribution Service
Add Bank | Banking Forum Online
EstoBIT Instant Exchange
BanksDaily on Twitter BanksDaily on LinkedIn BanksDaily on Instagram

Financial and Banking News

The trend: large banks will acquire smaller banks

KBW Inc., the New York-based boutique that advises financial institutions, expects 500 to 1,000 U.S. banks to fail by 2011, Chief Executive Officer John Duffy said.

"We think we are going to see quite a number of failures here in the next two years, and we’ll see another wave of consolidation," Duffy said. "There will be a lot of consolidation among the smaller players."

Regulators are shutting U.S. banks at the fastest pace in 17 years, with 92 failing this year. Of the 8,200 lenders operating in the U.S., a total of 416 are on the Federal Deposit Insurance Corp.'s "problem bank" list after failing tests for asset quality, liquidity and earnings in the second quarter, the most since June 1994.

As the residential mortgage market begins to stabilize, Federal Reserve supervisors are examining the vulnerability of medium-sized lenders to falling commercial real estate values, a central bank official said yesterday.

Commercial real estate will be "the major shoe to drop," Duffy said. "We are in the second inning if this is a baseball game."

JPMorgan Chase & Co., the second-biggest U.S. bank by assets, and No. 4 Wells Fargo & Co. will probably acquire smaller banks to fill geographic expansion plans, Duffy also said.

Citigroup Inc., which has had talks with the Treasury Department about the government selling its 34 percent stake in the bank, will likely be the last bank to shed state ownership, according to Duffy.

"They are viewed as the being the most damaged of the large franchises, so they'll probably be the last to get out," Duffy said. "When there's more stability in the environment, they may well be able to get out from underneath the government. But I think that that's a ways off."

Duffy said the U.S. Treasury could unload its stake in Citigroup using a series of managed sales over the next two years with multiple buyers. The Treasury owns 7.69 billion common shares.

Source: Bloomberg
Date: 18.09.2009 [230]
Get your content published on BanksDAILY.com in just a few clicks.

Financial and Banking News
 Post-Pandemic Economic Recovery: Key Factors Driving Growth and Stability

The COVID-19 pandemic caused a global economic halt, resulting in disruption, job losses, and uncertainty. However, as vaccination efforts progress and countries adjust to the new normal, there is hope for an economic recovery.

 Wiki Finance Expo Sydney 2023 Is Coming Soon!

Regulation, Forex, Crypto, Web 3.0, Metaverse, AI, ESG Will Be in Focus. Taking place on November 16th, Wiki Finance Expo, Sydney 2023 is Aussie largest and most anticipated fintech event of the year. 30.10.2023 | Source: WikiExpo

 Blockchain Economy Dubai Summit 2023: Just Two Weeks Away and Buzzing with Anticipation

Dubai, UAE - The Blockchain Economy Dubai Summit is generating palpable excitement within the blockchain and crypto communities, with only two weeks remaining until the event. Scheduled for October 4-5, 2023, at the Le Meridien Dubai Hotel & Conference Center, this prestigious event gathers over 3,000 blockchain entrepreneurs, crypto enthusiasts, and industry leaders from 85 countries. 20.09.2023 | Source: Teklip

 📰 News Archive

2007-2024 © BanksDAILY.com | All Banks in One Place | Privacy Policy