Which banks are at risk?

15th Dec 2009 by Gary

The surprising answer to this question is all banks are at risk, it's only the degree of risk that is the issue. Much of it depends on their exposure to bad loans, whether it's residential or commercial, as well as to derivatives, which could devastate the bank. Going into 2010, it's Alt-A loans and commerical loans which are driving the main concerns, and in the case of commercial loans, that's more of an exposure to regional and local banks, more than it is to the larger national and international banks. The second half of 2010 is expected to be a terrible season of time for defaults on commercial loans, as well as the first half of 2011.

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com