FDIC's Sheila Bair: More bank failures coming

Bill Freehling's picture

More U.S. banks are likely to fail this year and next under the weight of bad commercial real estate loans, FDIC Chairwoman Sheila Bair said tonight in an interview on CNBC.

Bair made her comments to CNBC's Maria Bartiromo on CNBC's special program "One Year Later," which marks the one-year anniversary of the collapse of Lehman Brothers and other former Wall Street titans.

There have already been 92 bank failures in the U.S. this year. Just about every Friday the FDIC announces a new failure.

Bair said it will likely continue this year due to bad commercial real estate loans. Most of the trauma so far has been in residential loans, but commercial real estate is seen as "the next shoe to drop."

Bair said bank failures will likely be higher-than-normal through the end of next year, and then things will improve. She said it's possible that the FDIC might need more funds if the pace of bank failures continues.

Written by Bill Freehling

Add new comment