With more than 14 bank failures – so far this year – and more promised – including Wachovia, many voiced their concerns about the state of local banks in Sevier County.
According to the FDIC.gov website, the FDIC-insured commercial banks and savings institutions reported net income of $19.3 billion in the first quarter of 2008, a decline of $16.3 billion from the $35.6 billion that the industry earned in the first quarter of 2007. Insured institutions set aside $37.1 billion in loan-loss provisions during the quarter, as the asset quality of real estate portfolios continued to deteriorate. The average return on assets (ROA) was 0.59 percent, falling from 1.20 percent in the first quarter of 2007.
The TV pundits reported this past Wednesday morning the world wide stocks are free falling and the retirement funds have lost two trillion dollars in the past few months. They claim we haven’t hit the bottom yet because the trust has been lost.
In hopes of restoring trust, it is important to note that the banks and businesses which are failing, and started this financial avalanche are the large national and international businesses. Those which are largely disconnected from local communities.... read the rest of the story by Subscribing now.