Thursday, June 05, 2008

FDIC's Bair: Institutions of greater size May Fail

I found this over at Calculated Risk. The website is worth bookmarking. They come up with some good information and present it concisely.

From Reuters: Bigger U.S. bank failures may be coming - FDIC (hat tip Ed)

An increasing number of banks face high exposure to deteriorating conditions in commercial real estate and construction lending, [Federal Deposit Insurance Corp Chairman Sheila Bair] told a Senate Banking Committee hearing on the state of the banking industry.

"There is also the possibility that future failures could include institutions of greater size than we have seen in the recent past," Bair said. "Uncertainties in today's economic environment continue to pose significant challenges for the banking industry, households, and bank regulators."

Note: The largest bank to fail this year was ANB Financial with $2.1 billion in assets.

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