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Sunday, August 23, 2009

Bove sees 150-200 more bank failures

by Calculated Risk on 8/23/2009 07:31:00 PM

From Reuters: Analyst Bove sees 150-200 more U.S. bank failures (ht Ron at WallStreetPit)

[Dick] Bove said "perhaps another 150 to 200 banks will fail," on top of 81 so far in 2009, adding stress to the FDIC's deposit insurance fund.
Bove said the FDIC will likely levy special assessments against banks in the fourth quarter of this year and second quarter of 2010.

He said these assessments could total $11 billion in 2010, on top of the same amount of regular assessments. "FDIC premiums could be 25 percent of the industry's pretax income," he wrote.
Meredith Whitney said Friday that she expects around 300 banks to fail this cycle. With 109 failures so far (81 this year), 300 seems low. I'll take the over ...