Financial 15 Split Corp T.FTN

Some 300 US banks are at risk

[Donwaan]

About 20% of office space around the US was unleased at the end of last year hitting property values, which have already plunged 25% across the country. In the coming months, many of the mortgages that were taken out before at low interest rates will need to be refinanced.

[Donwaan]

Here's the article link: https://www.bbc.com/news/business-68472143

[Experienced]

Good reference Donwaan....  We need to put this number of 300 into perspective and also make an assessment as to whether this will impact our investment in FTN. And if so - how. First of all there are there are approximately 5000 banks in the US.  This is separate banks, not the total number of bank branches.  So while 300 may seem like a big number to Canadians especially since

[KozmoT]

Great post and information ... thx Best part ... "None of the failed banks are owned by FTN.  In addition, what normally happens in the US is that the big banks swallow up the assets of these small failed banks for pennies on the dollar and actually become richer and more dominant.  This means that for investors in FTN, the 300 potential bank failures referenced in the article may

[mouserman]

Yes i have been mentioning the commercial debt risk, in both the US and Canada. OF course US total $$ would dwarf the risk in Canada, and Canada's banking system is considered much lower risk because of laws prohibiting too much risk. However when the 250 banks , (Washington Mutual. etc  ) went under in 2007-2008,  the big banks also took a hit as did the general markets. While  

[Experienced]

Mouserman...I kinda got to disagree with you here As background, I was working on The Street at that time and retired in 2010.  So I was in the middle of all this all the time.  While Washington Mutual was an important event, it was not a key or seminal event that triggered the Great Recession. The core of what happened was really centred around three things. One....all of the major

[mouserman]

Yes i was also invested back in collapse of 2008, and it was the era of the Big Short... watched Jim Willie at a conference in Vancouver, big crowd to listen to him there, over half of them walked out when he said residential real estate was about to go bust. His recommendation at the time was to shortsell FANNIE MAE and Freddie MAC....  and people were actually swearing at him calling him an

[Experienced]

Yeah Mouserman - I recall at that time attending a company meeting where the guest speaker was a money manger from the US with about 2 billion in assets under administration who saying the opposite that the residential sector was only 5% of the US economy and so we had nothing to worry about.   When he was done, I asked him a simple question - "The banks are leveraged in excess of 30:1,