| Posted by david on June 22, 2010 |
I keep getting updates from news outlets about banks – mostly community banks – being foreclosed upon by the FDIC. More and more banks are not meeting the capitalization requirements set forth by the FDIC and are thus being force to shut their doors. These community banks are pillars of their community and when they’re being shut down, I can imagine that a wave of uneasiness flows through the community. Why are these banks closing up shop? Well for one, their balance sheets are somewhat messed up – they have too many commercial notes that are not performing on their books and the FDIC isn’t too happy about that. Banks need to step up and be pro-active about their balance sheets and clean it up as fast as possible. They don’t want to see these balance sheets explode in their face and like a BP oil rig. They should use a virtual special asset manager like Commercial Note Brokers to help them with their REO, residential and commercial real estate notes.
Robert Kiyosaki wrote a very interesting article today about the looming sub-prime/derivative disaster waiting to blow up in our faces. That may sound a bit drastic but a $700 Trillion dollar disaster (according to Kiyosaki) is waiting to happen. Through my blogs, I’ve hinted to the fact that we’re facing a financial bomb but nothing as big as a $700 Trillion. This is somewhat disturbing when you think about it.