Analysts Say More Banks Will Fail

New York Times (07/14/08) P. C1; Story, Louise
As many as 150 banks across the country could fail over the next 12 to 18 months, and many other lenders are likely to shut branches or pursue mergers, according to analysts. "Everybody is drawing up lists, trying to figure out who the next bank is, No. 1, and No. 2, how many of them are there," says Richard Bove, a banking analyst with Ladenburg Thalmann. Regulators also want to know how bad the bank failures, as a result of falling home prices and rising defaults on mortgages, will impact the economy. The big banks that release their earnings reports this week and in the weeks to come are not in danger of failing, but some small and midsize lenders appear to be in trouble.