Today U.S. Banks reported a loss of $26.2 billion in the past three months. This is the first time in the past 18 years that U.S. Banks had reported a loss. Losses were directly correlated to the Housing and Credit Crisis. Looking on this situation we should see a complete upheaval of our banking system. As of the end of 2008, the FDIC reported that there were over 262 banks in the U.S. Expect this number to drop as many small banks will get bought out by Larger Institution to keep afloat. The system needs changing however as the fundamentals in place are lacking any structural guidance that gives me confidence for the future. First lending out money needs tighter regulations on who gets what amount of money. Trailer Trash loans can no longer take place. Obama's plan just came out so it will be interesting to see what he has envisioned for the Financial Markets. I am about to go read it and then i will write an in-depth analysis on what effect it will have. Stay Tuned.
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