3-6 Months Until Foreclosure-Gate Gets Out Of Control: Banks Bleeding Cash

10-08-2010 • Businessinsider.com/

Chris Whalen of Analyst Institutional Risk Analytics spoke with CNBC this afternoon about foreclosure-gate and its impact on the banks. 0:50 There is declining interest income on one side of the house and increasing costs in servicing foreclosures of properties. They are losing money on both sides. 1:05 The efficiency ratio for banks is going to go close to 100%, banks are going to be bleeding cash. 1:30 The next three to six months is when things are going to get out of control; banks servicing departments don't have the capacity to own and operate the real estate. Dodd-Frank legislation may be used to restructure banks. 2:15 Fannie and Freddie are the biggest sellers of real estate in the U.S., Fannie Mae is the biggest landscaping company in the U.S. now. 2:30 Banks are not equipped to be owners of real property; when their assets get illiquid they can't lend. Banks are walking away from the properties. Read more: http://www.businessinsider.com/chris-whalen-says-banks-are-bleeding-cash-over-foreclosure-gate-2010-10#ixzz11n2izwqV

Freedoms Phoenix

Online Magazine

Join-Us

Newspaper

Phone Apps

Declare Your Independence with Ernest Hancock

Live Broadcast

DYI is live weekdays 9-12ET!

MENU

3-6 Months Until Foreclosure-Gate Gets Out Of Control: Banks Bleeding Cash

FreedomsPhoenix.com

Live Broadcast

MENU

Watch Streaming Broadcast Live:

Current News | Contents By Subject

Additional Related items you might find interesting:Related items:

FreedomsPhoenix.com