U.S. large-loan bank losses triple to $53 billion (economy improving in a mysterious way)

Reuters ^ | 09/25/09

[TigerLikesRooster]

U.S. large-loan bank losses triple to $53 billion

Fri Sep 25, 2009 6:05am EDT

(Reuters) - U.S. regulators say that the level of losses from syndicated loans facing banks and other financial institutions tripled to $53 billion in 2009, due to poor underwriting standards and the continuing weakness in economic conditions.

According to the Shared National Credit Program (SNC) 2009 Review, an annual inter-agency report released on Thursday, credit quality deteriorated to record levels with respect to large loans and loan commitments.

The Shared National Credit Program which was set up in 1977 to review large syndicated loans now reviews and classifies all institutional loans of at least $20 million that are shared by three or more supervised institutions.

[TigerLikesRooster]

Oh, well, despite such a development, economy is improving 'in a mysterious way.' Even God has not been so mysterious in His works.

[TigerLikesRooster]

Ping!

[the invisib1e hand]

Even God has not been so mysterious in His works.

Well, He's no Obama, is he?

[the invisib1e hand]

He.

[Brilliant]

I don’t think the residential defaults are anywhere near ending either. Lenders have been holding back on foreclosing because they know that they can’t sell the homes once they complete the foreclosures anyway.

[wombtotomb]

I totally agree with you there. I know several people who have not paid a mortgage payment in 1-2 years, and still nothing.

Starting to feel like a schlep for continuing to stay current.........

[pointsal]

Look at the credits for the story.
(Reporting by Biswarup Gooptu in Bangalore; Editing by Greg Mahlich)

Aren't there any reporters left in the U.S.A.? Have they all be downsized?

[TigerLikesRooster]

This is Reuters, British wire service. They must be outsourcing news writing to India.:-)

[SampleMan]

Unemployment up, GDP down... Obama works in mysterious ways.

[algernonpj]

Aren't there any reporters left in the U.S.A.? Have they all be downsized?

Outsourcing reporting has been going on for a few years now. Another field Americans can't/won't do!

[ex-Texan]

All Americans Really Need to Wake Up -- Obama Supports the NWO

Greenspan and Bernanke have manipulated the U.S. into a situation where armed conflict is the most likely outcome of our economic woes. The Fed is a private central bank owned by other private banks. Ownership is secret. The Fed's web site purports to show ownership is held by branch offices of the Federal Reserve.

Nothing could be further from the truth. I posted a report a couple of months ago that proved England owned a controlling interest in the Fed. Look it up for starters. You may even be shocked to learn the truth.

Our government is being manipulated, in part, by the same economic powers that control the UK. My best guess for where this armed conflict will take place: The Middle East. I could post more info here but decline to do so.

[TigerLikesRooster]

It will be happening soon.

[stephenjohnbanker]

The improvement is illusory. There are billions of 5/1 ARM’s starting to come due that were written at the top of the real estate market. And billions of credit swaps which will go under. Also, you have a POTUS whose main goal is destroying the capitalist system. Sure, there are stocks that went up, because they were beaten down to an inordinate degree, like GE. But the outlook is bad, on most fronts.

[ex-Texan]

The real unemployment rate is over 20% today. And getting worse rapidly . . . Obama is a jerk teleprompter reader, a puppet for the bankers and NWO shill.

[Oatka]

Lenders have been holding back on foreclosing because they know that they can’t sell the homes once they complete the foreclosures anyway.

Also, a foreclosed home goes on the books at its real value. So the bank's asset go from a $400,000 unforeclosed house to a $200,000 "non-performing asset" - ergo $200,000 in "reserves" has disappeared. In a fractional banking system, decreasing leverage bites Big Time.

[AndyJackson]

Starting to feel like a schlep for continuing to stay current.

It is really depressing that those of us who bought wisely and soundly are stuck with our mortgages while those who made bad decisions get to live rent free. My threat to stop paying my mortgage would not be credible.

[Toddsterpatriot]

The real unemployment rate is over 20% today.

The real unemployment rate is over 56%, fewer than 132 million employed, population greater than 300 million. We're doomed.