Top Fed Bank Regulator Says 30% of Banks Have Unsatisfactory Supervisory Ratings
Remember a few months back when someone asked why we still maintained Bank Fail Friday and we said because our work is not over? That mission has not changed and doesn't appear to be changing any time soon.
Patrick Parkinson, the Federal Reserve’s chief bank regulator, said nearly one out of three U.S. banks has supervisory ratings deemed unsatisfactory.
“Around 30 percent of all banks have less than satisfactory supervisory ratings,” Parkinson said today at the American Bankers Association annual government relations summit in Washington.
Parkinson, director of the central bank’s division of banking supervision and regulation, said that while banks’ asset quality is “stabilizing,” the “conditions in real estate markets are still very difficult” and the banking system is “still in the repair and recovery stage.”
I disagree with that assessment. For banks to be in the repair and recovery stage, their balance sheets would have to more accurately reflect the condition of what's rotting on them. And last I heard, we're still in the process of correcting major valuation errors ("mark to Disneyland") and by "in the process of" I mean "still completely ignoring."
Good luck with that!