
I have been seeing this in my business for the past year. The banks are literally sitting on thousands of delinquent and pre-foreclosure loans. The federal government pressured the FASB to change the mark-to-market requirement and now nobody really knows the financial condition of the banks. However, I believe that next year many local and regional banks will either fold or be swallowed by the larger banks because of their bad commercial real estate portfolios.

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