Featured in Richard Suttmeier’s Stock Strategies Blog on EQUITIES Magazine Website
Richard Suttmeier’s latest post,” The FDIC Sees More Bad Loans and Bank Failures”, acknowledges the FDIC’s confession of problems currently plaguing C&D and CRE loans. This week FDIC Chair Sheila Bair finally brought these risks to the public eye. What took so long?
In making a statement on Capitol Hill, Bair incorrectly stated that bank performance lags behind economic recovery. Suttmeier’s proof against this thesis is the simple fact that the FDIC ignored the regulatory guidelines for exposures to C&D and CRE loans noting that data from banks are a leading indicator not a lagging one. Since 2006 guidelines were ignored, problems escalated, and now banking regulators will soon issue guidance on CRE loan workouts, most likely at tax payer’s expense.
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About Richard Suttmeier
Richard Suttmeier’s latest blog analyzes earnings from Intel, the most important technology stock, JP Morgan Chase, the most important “too big to fail” bank, and break-out’s for Comex copper and Nymex crude oil.
Richard Suttmeier is the chief market strategist for ValuEngine.com. Richard is an industry leader on the housing market and banking system and writes a newsletter covering The Great Credit Crunch. He produces a List of Problem Banks by name. He produces daily and weekly briefings covering the US Capital markets. Richard Suttmeier’s ValuEngine Four In Four video is available on forextv.com.
About EQUITIES Magazine:
Since 1951, EQUITIES has served both retail and institutional investors by examining industry trends, analyzing strategies and opportunities, and profiling financial leaders and emerging public companies. Its global audience increased dramatically after the launch of its European and digital versions, as well as its website, which provides free real-time market quotes and a free customizable, real-time portfolio-management interface. EQUITIES is also one of a select group of publications available on the Apple iPhone.
