More Than 750 Banks at Risk of Failure over Next Two Years

 

THE VAULT - CREDITOR PROTECTED CASH ALTERNATIVES

Despite last year’s dip in U.S. bank failures, at least 758 lending institutions are at risk of failure over the next two years, according to an analysis by Invictus Consulting Group, which conducts stress and sustainability tests on all FDIC-insured banks for regulators, banks and investors.

Based on all publicly available data on banks for the third quarter ended Sept. 30, 2011, Invictus said that, absent corrective action to raise capital or merge, the 758 banks it identified are unlikely to remain viable primarily due to the weak recovery, which could trigger a new wave of loan defaults, according to the consulting firm. Approximately 200 of these banks are subsidiaries of publicly traded bank holding companies.

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