Bad loans sap banks’ profits

  • Article by: JENNIFER BJORHUS , Star Tribune
  • Updated: November 26, 2008 - 3:57 PM

Mounting loan losses are straining the nation's banking institutions, and Minnesota's banks aren't immune.

  • 6
  • Comments

  • Results per page:
  • 1 - 6 of 6
maypowNov. 26, 08 5:45 AM

When "times were good" the banks weren't complaining...now when the bad loans they gave out are coming back to roost....it is "woe is me....woe is me....government bail me out"....what about the poor guys who were duped, bu lenders at those same banks, where is their bailout...I am not talking the latest "speak", I am saying...if the government can give all these banks money to get them "solvent" after their bad choices...why can't they provide the same bailout to consumers...

8
7
toolman28Nov. 26, 08 6:48 AM

I read today that some bank in CA lent a mexican strawberry picker with a income of $14,000 a year and spoke ZERO english $720,000 for a home And Now we the tax payer are going to be paying for the banks ingnorance - I will be glad to help them out as long as the CEO's of these banks are striped of every single penney they have and tossed on the street like any one else would be if they ran there own finances like they did

9
4
rookie6886Nov. 26, 08 8:28 AM

This story is in reaction to the poor performance of the industry for the third quarter of this year. No where in the story do I see a banker complaining or asking for a bail out. In fact, the government's bailout is intended for the investment banks such as JP Morgan, Morgan Stanley, etc - not commercial banks. The government's capital purchase program was essentially shoved down commercial bankers' throat to help regain consumer confidence in the loan industry. Be careful when you use the term "bank" to make sure you know who you're referring to.

4
1
Redstar123Nov. 26, 08 9:48 AM

How about: The government "bails out" the consumer by purchasing your home and re-selling it when the market recovers. You no longer have a home. That is what the bank bail-outs are proposed to do. Buy the asset and re-sell them later. If you don't pay your mortgage, one way or another you should be out of the house and it needs to get re-sold to someone that can pay the mortgage.

4
1
gts_55113Nov. 26, 0810:29 AM

I was homeless in 2001, worked my tail off and in 2005 I bought a townhome. It was a very proud moment for me. But in 2006 I was hurt at work and became disabled. I was forced to take a pay cut of over 1000 a month. I had to drain my savings to keep up suddenly. I contacted my credit union of 33 years Teacher Federal Credit Union showing my old pay stubs and the current ones showing the pay cut. They refused to even talk to me. November was the first month I could not pay. Not everyone who is going into foreclosure is doing it because of bad mortgages. I can not help being disabled and having my pay cut $1000 plus. Its TFCUMN's total unwillingness to accept that people are hurting with pay cuts and job loss and 401k's drying up that is costing me my home.

5
2
allarson73Nov. 26, 08 2:03 PM

the loan loss reserve is not an account used to build up for future losses. Its used to account for losses already in the portfolio that have yet to be identified or charged off. Any reserves for future losses should be done through a bank's capital account. What I am saying is that generally if a bank increases its reserves those losses already exist.

1
0
  • 1 - 6 of 6

Comment on this story   |  

ADVERTISEMENT

Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT