Only 92 bank failures

[Kevin Yeats]

The FDIC closed 2 more banks on 12/16. Unless the FDIC wants to play Scrooge and close 8 more banks before the end of the year, it does NOT look like we will hit the century mark unlike the last 2 years (140 in 2009 and 157 in 2011).

Of course the assets in these failed banks are up over prior years.

[Bryan Hancock]

If they had to mark their losses to market I am confident that MOST of the banks would have had to close. I don't believe most of the financial "facts" coming out with all of the market distortions we currently have.

[Kevin Yeats]

Mark to market accounting and that fact that banks do not have to adhere to that standards certainly creates a lot of the distortions and feeds into the difficulties in the business of banking and the regulation thereof.

In my view, it would be a very difficult task to mark all of the assets of a bank to anything close to a market value as there is no market for many of those assets. While many mortgages against primary residences are fairly standardized, look at the difficulty that arose in that market. Now try standardizing business loans.

[Joel Owens]

I have been told by some bank presidents that what they do with their loans depends on whether they originated it in house or bought it with a loss share agreement with the FDIC.

With the FDIC they are guaranteed so many cents on the dollar on the loan and they have told me that the FDIC doesn't require them to do anything with the loan until 2014.

So investors offering to buy at market for 50% on the dollar from original balance are being rejected as the FDIC is guaranteeing the bank 80 cents from original balance.

Many banks are in a "wait and see" approach and are hoping for some recovery of pricing assets but knows a full recovery on the balance sheet is not possible from original loan balances funded during the boom.

So each banks situation is different and you have to take advantage in the time period of being vulnerable.I have learned this on my deals with clients and myself.

Once you get an approval on a low price with a specific asset manager or board member you have to close it fast. The bank could be sold off to another bank,it could be shut down by the FDIC,the file could transfer to another department or office inside the bank and they could disagree with the previous approval.

I have gotten great results with newer asset managers and then the file gets transferred to another division and I have to deal with a President and go round and round to get it to go through because the buyer took to long splitting hairs over a few K or their funding is backed up.

The regulations are ever changing as a VP at a bank told me and the banks position changes constantly so when an agreement is reached on a deal TIMING to close is critical before that door closes forever.

[Dale Osborn]

If only we had a non-bank source of funds that had better rates & terms than the banks. With people then pulling out of the banks - there would be more that would go under.

[Kevin Yeats]

Dale, is that a plug for my company?

[Dale Osborn]

Pick up the ball and run with it! I am always looking for an extra million or so at 5% for 30 years. Let me know!