Bank failures continue, squeezing consumers

TRD New York /
Sep.September 28, 2010 10:00 AM

Two more U.S. banks failed last Friday, bringing the tally to 279 collapsed institutions since Sept. 25, 2008, when Washington Mutual went under in the largest bank failure ever recorded. During that time period, the financial industry’s assets have diminished by 4.5 percent. According to the Wall Street Journal, the effects of the wave of bank failures over the last two years — which Standard & Poor’s says is far from over — will have a lasting effect on credit, customers and the economy. In addition to lost jobs and tightened lending standards, fewer competitors means that the remaining banks have the freedom to offer lower interest rates on savings accounts, further squeezing struggling American consumers. “When we step back and look at this financial disaster 10 years from now, the destruction of capital in our economy as a result of what we’ve endured will be the single greatest lasting impact on recovery and how the economy performs in the future,” said Howard Headlee, president of the Utah Bankers Association. [WSJ]

 

Related Articles

arrow_forward_ios
Foreclosure errors still common at big banks

Foreclosure errors still common at big banks

Foreclosure errors still common at big banks
Placeholder image

S&P calls for greater investor safeguards in debt-related eminent domain

S&P calls for greater investor safeguards in debt-related eminent domain
U.S. housing market data is mixed bag

U.S. housing market data is mixed bag

U.S. housing market data is mixed bag
Placeholder image

S&P out of CMBS game

S&P out of CMBS game
Source: S&P

U.S. home prices drop for 3rd consecutive month

U.S. home prices drop for 3rd consecutive month
Solow secures $625M loan on 9 West 57th St.

Solow secures $625M loan on 9 West 57th St.

Solow secures $625M loan on 9 West 57th St.
Placeholder image

Nationwide housing prices are worse than previously reported, decline further

Nationwide housing prices are worse than previously reported, decline further
U.S. home prices inch up in August

U.S. home prices inch up in August

U.S. home prices inch up in August
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...