article imageProfessor: Hundreds of U.S. banks will fail in the next 18 months

By Chris V. Thangham.
Subscribe to author
Aug 5, 2008 by  Chris V. Thangham - 14 votes, 1 comment
Share
Listen - Email - Print
Recipient email:
You can enter up to 10 comma-separated email addresses.
Your email:
optional
Message:
optional

A New York University professor and famed economist Nouriel Roubini warned that at least 100 banks in the U.S. will fail in the next 18 months of recession.
Professor Nouriel Roubini told Barron’s that the U.S. is in a long recession will last for at least another 18 months. This recession will kill hundreds of banks, mostly medium-sized regional banks.
According to Roubini, big banks will also have difficulty, such as Wachovia bank, but they have enough resources to back up those losses according to Roubini.
The government and U.S. taxpayers will be the ones forced to pay the heavy price for the banks’ failures. It will cost an estimated $1- to $2-trillion to bail out failing banks.
The banks will become insolvent because of the huge mortgage failures and the hundreds of millions of dollars outstanding in home-equity loans that will become worth nothing, Roubini said.
U.S. consumers are no longer able to save more money and the Federal Reserve performance in handling the mortgage crisis has been poor.
Roubini told Barron's:
"The regulators should investigate themselves for bailing out Fannie Mae and Freddie Mac, the creditors of Bear Stearns and the financial system with new lending facilities. They have swapped U.S. Treasury bonds for toxic securities."
Roubini said the government is not bailing the banks out, but rather the shareholders, bondholders and management who made the mistakes that led to this financial mess.
The banks that will close in the near future are the community banks that finance homes, stores, downtown areas and commercial real estate, which will lead to further decline in the U.S. economy.
article:258233:14::0
More news from: United States»

Live like a rodent at the French 'hamster hotel'

If you've ever had the urge to spend a night or two as a hamster, you need to visit Nantes, France. For around $150 a night, you can do everything a hamster does, from spinning on a wheel to eating the animal's food to sleeping on a pile of hay.
Nov 21, 2009 by  David Silverberg in Travel - 2 comments

Easyjet apologizes for Holocaust Memorial photo shoot

Easyjet is a European regional carrier that has quickly carved out market share with discount prices and targeted marketing. However, a recent public relations faux pas is causing controversy.
Nov 21, 2009 by  Bob Gordon in Travel - 6 comments

Chicago Mayor Says Media 'Kicked' Oprah Out of Town

Chicago Mayor Richard M. Daley weighed in on the story that every Chicagoan has an opinion about Oprah's departure happening in eighteen months. Yesterday, Mayor Daley placed the burden of shame on the fifth estate.
Nov 21, 2009 by  Bob Gordon in Entertainment - 3 comments

TopFinds: Child Poverty in U.S., Creating Toothpick Cities

Investigating U.S. child poverty rates. A British TV station hires facially disfigured anchors to read the news. Call of Duty: Modern Warfare 2 becomes the hottest video game of the year. These are the top stories making headlines around the world.
Nov 20, 2009 by  David Silverberg in Internet - 2 comments

Canada: No more H1N1 deaths than from seasonal flu

While headlines decry the rising H1N1 death toll, news is emerging that there have been no more deaths from this pandemic than from seasonal flu.
Nov 20, 2009 by  Lynne Melcombe in Health - 8 comments
apis-129892 apis-129889 apis-129886 apis-129867 apis-129865
Email:
Password:
Remember meForgot password?