282 US Banks Facing Financial Trouble

A recent report has identified 282 US banks with a combined $900 billion in assets that are facing a “toxic combination” that could lead to their collapse.

Risk Factors

According to the Klaros Group, these banks have:

  • High exposure to commercial real estate loans
  • Significant unrealized losses on their balance sheets

Names Kept Secret

Klaros Group has not released the names of the banks involved, fearing it could trigger bank runs.

Regulators’ Challenge

The large number of banks affected presents a significant challenge for regulators. Brian Graham, co-founder of Klaros Group, said, “If there were just 10 banks that were in trouble, they would have all been taken down and dealt with. When you’ve got hundreds of banks facing these challenges, the regulators have to walk a bit of a tightrope.”

Notable Example

One notable bank on the list is New York Community Bank (NYCB), which recently reported worse-than-expected losses and has seen a significant outflow of deposits.