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I forwarded this to an Instutional Sales Trader that I worked with in banks( I was a Nasdaq Market Maker).....we have the same response..they only gave you 22 out of thousands...but those looked at sounds bad..we have no idea the region/state
or size.
Sent from my Verizon, Samsung Galaxy smartphone
-------- Original message --------
From: "Bodo, Eugene" <ebodo@janney.com>
Date: 2/19/24 3:48 PM (GMT-05:00)
To: douglas crawford <douglas-crawford@hotmail.com>
Subject: RE: [Salon] Dumb & dangerous (small) banks
They don’t give you a list of the 22 banks. It sounds pretty bad, but they only came up with 22 banks out of several thousand.
From: douglas crawford <douglas-crawford@hotmail.com>
Sent: Saturday, February 17, 2024 9:41 PM
To: Bodo, Eugene <ebodo@janney.com>
Subject: FW: [Salon] Dumb & dangerous (small) banks
Sent from my Verizon, Samsung Galaxy smartphone
-------- Original message --------
Date: 2/17/24 9:08 AM (GMT-05:00)
Subject: [Salon] Dumb & dangerous (small) banks
Dumb & dangerous (small) banks
About two dozen banks in the US had portfolios of commercial real estate loans in late 2023 that federal regulators indicated would merit greater scrutiny, a sign more lenders may face pressure from authorities
to bolster reserves.
A trio of regulators publicly warned the industry last year to carefully assess any large exposures to debt on office buildings, retail storefronts and other commercial properties. At the time, authorities said
they would pay closer attention to banks that rapidly piled up such loans worth more than three times their total capital.
While New York Community Bancorp, which set off a cascade of stock drops in recent weeks as it braced for potential loan losses, was the biggest US bank that came close to fitting the regulators’ criteria, many
smaller lenders went further. That’s because they amassed outsize concentrations even faster, according to a Bloomberg analysis of federal data from more than 350 bank holding companies.
Bloomberg’s review found 22 banks with $10 billion to $100 billion of assets hold commercial property loans three times greater than their capital. Half of those firms had growth rates surpassing the thresholds
laid out by regulators. The tally was even higher among banks with less than $10 billion of assets: 47 had outsize portfolios, of which 13 had swelled rapidly. The analysis excludes loans for nonresidential buildings that are occupied by their owners.
Source:
Bloomberg
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