Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

One Type of Loan Causes Small Banks to Fail

496 views

Published on

Summary of a GAO Report on Bank Failures

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

One Type of Loan Causes Small Banks to Fail

  1. 1. Brian S. McDaniel
  2. 2.  Largely Related to Nonperforming R/E Loans  Commercial Real Estate (CRE)  Acquisition, Development, and Construction (ADC)  Highlight the Impact of Impairment Accounting and Loan Loss Provisioning
  3. 3. Credit Losses and Charge-offs Contributed to Failures Fair Value Accounting Did Not Contribute
  4. 4. Current Accounting Practices May Have Delayed Reporting
  5. 5. FDIC Attracted Bidders at Least Cost to the Deposit Insurance Fund Health Banks Balked
  6. 6.  Market Concentration Did Not Shift  8 of 188 metropolitan areas met criteria  5 of 68 rural communities met criteria
  7. 7.  http://www.gao.gov/products/GAO-13-704T  http://www.gao.gov/assets/660/655193.pdf  http://www.individual.com/storyrss.php?stor y=177495625&hash=41aba5859000585f21d068 0e6d8843f2

×