Toxic Loans Topping 5% May Push 150 Banks to Point of No Return (money, state)

[oz in SC]

Such pessimism....think hopeychangeness and all will be good.

More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank’s equity and threaten its survival.

The number of banks exceeding the threshold more than doubled in the year through June, according to data compiled by Bloomberg, as real estate and credit-card defaults surged. Almost 300 reported 3 percent or more of their loans were nonperforming, a term for commercial and consumer debt that has stopped collecting interest or will no longer be paid in full.

Toxic Loans Topping 5% May Push 150 Banks to Point of No Return - Bloomberg.com

[HappyTexan]

And they just extended TALF til next June to cover commercial loans, credit card, student loan debt, auto, small business debts.
Fed, Treasury extend TALF to mid-2010 for CMBS - Yahoo! News (http://news.yahoo.com/s/nm/20090817/bs_nm/us_usa_fed_talf_2 - broken link)

TALF should be renamed to TURD. The Fed/Treasury are now covering all types of loans.
Why do we even need the banks anymore ?

[Keith G]

Geithner is doing the same thing with PPIP for toxic MBS and toxic derivatives, car loans, student loans and credit card debt with TALF. The same cycle that got us into this mess is NOW suppossed to get us out and "save" Capitalism by throwing more money at the banks and investors and "guaranteeing" that they can't lose by giving them privatized profits and socialized losses again. He puts up 50% and then if the securitized bond is still worth less than the investors 50% he uses FDIC to pay them the difference. Great day in a banker's life ... again ... and where is the help to the guy who paid his monthly payment for 10 years but now is out on the street after a short sale that made money for everybody but him? I'll answer my own question; he STILL out on the street.