1,000 Banks to Fail In Next Two Years: Bank CEO

The US banking system will lose some 1,000 institutions over the next two years, said John Kanas, whose private equity firm bought BankUnited of Florida in May.

“We’ve already lost 81 this year,” Kanas told CNBC. “The numbers are climbing every day. Many of these institutions nobody’s ever heard of. They're smaller companies.”

Failed banks tend to be smaller and private, which exacerbates the problem for small business borrowers, said Kanas, who became CEO of BankUnited when his firm bought the bank and is the former chairman and CEO of North Fork bank.

“Government money has propped up the very large institutions as a result of the stimulus package,” he said. “There’s really very little lifeline available for the small institutions that are suffering.”

This comes at a time when the FDIC has established new rules on bank sales. Private equity, for instance, would have to hold double the capital of their competitors in order to buy such an institution, said Kanas.

“This will have somewhat of a chilling effect on our participation,” he said. “As a result of having to keep higher capital levels, we’ll see lower prices coming from that sector.”

Of the 81 failed banks this year, two have been successfully acquired by private equity, he said. Kanas’ private equity firm bought UnitedBank, the failed Florida-based bank, from the FDIC in May. Regulators also allowed the sale of IndyMac Bank of California earlier this year.

“We are seeing more people step up and lobby bids in this situation,” he said. “We’re seeing more players mostly as a result of being attracted to the sector. I’m not so sure that will continue now that the rules have been ratchet it up.”

Meanwhile, much of the commercial realty problem resides in the regional and small community banks, said Kanas, because larger banks haven’t fueled that sector in the past.

“The market is expecting about the way we were expecting,” he said. “Unfortunately, we’re not seeing any evidence of a recovery in the real estate market in the southern Florida market,” he said.

Views: 69

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

cheeki kea commented on Burbia's video
Thumbnail

Soros Will Never Recover..Elon AIR The whole Thing

"Good find Burbia. It can only get worse. Is Soros too big to fail for he has his thumb in every pie…"
17 hours ago
Doc Vega posted blog posts
18 hours ago
Doc Vega commented on Doc Vega's blog post What's Meant to Be?
"tjdavis Thanks for your support Dude! "
21 hours ago
tjdavis posted photos
yesterday
tjdavis favorited Doc Vega's blog post What's Meant to Be?
yesterday
tjdavis posted a video

PORCUPINE TREE - BUYING NEW SOUL (HD)

Filmed at the Park West, Chicago, USA, 11-12 Oktober 2005
yesterday
Burbia commented on Burbia's video
Thumbnail

Meet GibberLink, Conversational AI's secret language

"One agent's audio range has a lower frequency than the other. Another example of different…"
yesterday
Burbia posted a video

Meet GibberLink, Conversational AI's secret language

Join Boris Starkov and Anton Pidkuiko, the developers behind GibberLink, for a fireside chat with Luke Harries from ElevenLabs.On February 24, Georgi Gergano...
yesterday
Doc Vega posted blog posts
Saturday
Doc Vega posted a blog post

Interpersonal Insanity

Interpersonal Insanity How do you expect me to read your mind?All those hidden things that I might…See More
Friday
cheeki kea replied to cheeki kea's discussion Tartaria
"Look at what we have to put up with. Leftist journalism in full swing. Everyone knows who created…"
Friday
Doc Vega posted a blog post

Why Did We Americans Become so Cynical? At Least Those Who Think

 Cynicism is a form of counter intelligence. It materializes when the general public has been…See More
Wednesday
tjdavis posted a video
Apr 16
Doc Vega posted blog posts
Apr 15
cheeki kea commented on Snakedaddy's album
Thumbnail

a soon shit

"lol at first I thought this was an acronym or phase meaning an urgent trip to the lavatory but alas…"
Apr 15
tjdavis posted a video

Europe will be an Islamic Muslim State

සිංහලෙන් කියවන්න http://sinhalabuddhist.comSlavery, Terrorism and Islam: The Historical Roots and Contemporary Threat.. Adapted from Dr. Peter Hammond's book...
Apr 14
Sandy posted a video

A conversation with Charlotte Iserbyt

“The Deliberate Dumbing Down of America — A Chronological Paper Trail”, will change forever the way you look at your child’s education. Written by whistleblo...
Apr 14
Doc Vega posted a blog post

Realizations

Used to think I had something special to bringThat I was seeing what others weren't seeingThe…See More
Apr 13
Burbia replied to cheeki kea's discussion Tartaria
"I forget some written language reads from right to left. The various calendars used up to now from…"
Apr 13
Less Prone favorited Burbia's blog post Mystery illness strikes Russia with fever, blood symptoms, and no cure in sight.
Apr 13

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted