Troubled Bank Number Grows By 54 YET Banks Post $21.6B profit (XLF)
Contradicting headline if you ask me! This past Friday was the first “bank fail Friday” we have seen without a failure, maybe they are playing the bank seizures a bit slower as the stock market erodes? Doubt it. Have no fear though the number of troubled banks has increased to 829, most are regional banks.
I believe regional banks represent the middle consumer’s true condition because they service more of the middle class and rural America. These smaller banks do not have fixed income trading desks, they do not make markets and are not SLP unlike the big banks who accounted for most of the $21.6 billion in net income in the April-to-June quarter.
(AP Writes) “The biggest banks have mounted a strong recovery with help from federal bailout money and record-low borrowing rates from the Federal Reserve. They also have been able to cut back on lending in troubled parts of the country such as Florida and Nevada.
Smaller and regional banks, however, have less flexibility. They have accounted for nearly all the banks that have failed this year.”