Washington Post: New crisis threatens healthy banks
This story from today’s Washington Post is showing up on other news sites: New crisis threatens healthy banks – Late loan payments hurt smaller lenders that dodged subprime mess.
A snippet:
Late payments on home-equity loans are at a record high, according to fresh data from the Federal Deposit Insurance Corp. The delinquency rates on loans for cars, small businesses and construction are spiking to levels not seen in a decade or more.
Unlike last year, when soaring mortgage defaults sparked a crisis of confidence in the financial system, the root of these problems is the downturn in the broader economy. Simply put, consumers and businesses are strapped for cash with job losses growing and retail sales falling, economists said.
Posted: June 22nd, 2008 under Debt relief, In the News, Unemployment.
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