Toxic Loans Topping 5% May Push 150 Banks to Point of No Return - Bloomberg.com: "More than 150 publicly traded U.S. lenders own nonperforming loans that equal 5 percent or more of their holdings, a level that former regulators say can wipe out a bank’s equity and threaten its survival.
The number of banks exceeding the threshold more than doubled in the year through June, according to data compiled by Bloomberg, as real estate and credit-card defaults surged. Almost 300 reported 3 percent or more of their loans were nonperforming, a term for commercial and consumer debt that has stopped collecting interest or will no longer be paid in full."
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The article says 72 lenders have failed so far this year--and it seems that at least another 150 are in serious trouble.
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