Sunday, November 1, 2009

Moody’s, Central Bankers Concerned With Banks

As the FDIC continues shuttering U.S. banks, ominous signals are coming from Central Banks around the world and from Moody’s Investor Services. The timely release of this information seems to support the legislative reform proposed by Representative Barney Frank on Tuesday.

On Monday, Moody’s released a report that loan charge-offs suffered by U.S. banks are greater than those endured during the early years of the Great Depression. During 2009, uncollectable loans have topped $116 billion or 2.9% of all outstanding loans. As unemployment numbers continue to mount, loans failures will continue to rise. Today, the Labor Department announced that another 520,000 Americans filed for new unemployment benefits last week.

No comments:

Post a Comment