NEW YORK – A new report estimates that 200 banks with $170 billion in assets will fail in 2010, up from 140 banks last year with the same amount of assets.
The projection was made by Trepp, LLC. "The highest concentration of at-risk banks are in the boom/bust markets of Florida, Georgia and California, and the rust belt markets of Illinois, Wisconsin, Minnesota and Michigan," Trepp said in a report.
Meanwhile, the 30-day delinquency rate on securitized multifamily mortgages jumped 330 basis points to 13.2% in March over February, in large part due to a single, $3-billion default – that of Manhattan’s Stuyvesant Town and Peter Cooper Village project. Without that default, the delinquency rate would have jumped 62 bps to 10.5%, according a report from Trepp, which tracks the performance of commercial mortgage-backed securities.
Trepp reported the 30-day delinquency rate on all CMBS hit 7.6% in March, up from 6.7% in February. "Weakening commercial real estate and construction loans continue to drive bank failures," Trepp noted in a separate report.
