Catching Cold?

There is an old saying in real estate brokerage, " When banks catch cold real estate agents get pneumonia."

The New York Times reported on last Thursday 6-19-08, that "Regional Banks are Rocked" and that the stock of some banks have taken a turn for the worse.

In the past year some bank stock has lost between a low of -23% of value to a high loss of -86% percent of their stock value

"Everybody is trying to figure out where the bottom is!"

Biggest Bank Losers:Bank Loss
Percent in bank stock value
PNC Financial - 23%
M&T Bank - 30%
BT&T -42%
Marshall & L -55%
Suntrust -59%
Zions Bankcorp -60%
Regions Financial-67%
Keycorp -70%
Hunnington
Bancshares -75%
5th Third
Bancirp -78%
1st Horizon -80%
National City 0-86%

"The need for new financing highlights the trouble many banks are having in selling assets like (home) mortgages and home equity loans. They are trying to off-load these assets to reduce the amount of capital they are required to hold."

"And Federal regulators are particularly concerned about the exposure of the smaller banks to the commercial real estate market, which has softened in some part of the country."

Now it's critical for all to know the capital strength, or weakness, of lenders! Now go to bed, take two asprin and call me in a few years.

Bill McInerney