Search

The article reports that data from the U.S. Federal Deposit Insurance Corp. (FDIC) show lending by U.S. banks during 2009 fell at its swiftest rate since 1942. In addition, FDIC figures indicate over 700 banks are at risk of failing, the most in 16 years. Although the U.S. Congress has urged banks to lend more, the banks say their regulators keep telling them to exercise prudence in making loans.

The article discusses the impact on banks of a steepening yield curve in the U.S.. Ordinarily banks find it profitable to borrow at low, short-term rates and lend at higher, long-term ones. However, a lack of credit-worthy firms eager to borrow funds has restricted the ability of banks to take advantage of the situation.

The article reports on a credit rebound demonstrated by profits posted by regional banks as of July 2010, including SunTrust Banks Inc., BB&T Corp., and PNC Financial Services Group.

The article reports on the return of U.S. banks into profitability following the financial crisis but still have difficulty making new loans due to economic uncertainties.

The reports on the improvement posted by the regional banks KeyCorp, Fifth Third Bancorp and Comerica Inc. in their loan books which boosted investor confidence.

The article focuses on the decision of the bank Wells Fargo & Co. to issue interest-only loans that will defer the balances of U.S. borrowers for as long as six to 10 years. The eventual increase in housing prices and consumer income are expected by the bank to cover its Pick-A-Pay debt. Large writedowns on Pick-A-Pay mortgages are said to be avoided by Wells Fargo by moving its borrowers to interest-only loans. About 119.7 billion in the adjustable-rate mortgages (ARM) of Wells Fargo are from the acquisition of Wachovia Corp.

This article reports on the temporary restraining order won by Bank of America to freeze one billion U.S. dollars of Colonial BancGroup Inc. assets. According to U.S. District Judge Adalberto Jordan, the move was needed due to Colonial's near-collapse state. The lawsuit filed by Bank of America is aimed at protecting its claim on Colonial loans, In its complaint, Bank of America contends that the refusal of Colonial to turn over proceeds or underlying loans expose other entities to losses if Colonial is seized by banking regulators.

The article reports that the pace of loans going bad at PNC Financial Services Group Inc. and Fifth Third Bancorp has slowed during the second-quarter of 2009. Net income of PNC fell to 207 million U.S. dollars compared with 517 million U.S. dollars during the same quarter in 2008. However, Fifth Third posted a profit of 882 million U.S. dollars or 1.15 dollars per share. PNC chief financial officer (CFO) Richard Johnson said that the company expects its provision for loan losses to remain flat in coming quarters.