34 Tarp-Aided Banks Unable to Pay Government

" Next 35 banks that took top of the bailout money on now unable to make better installment payments back to the government. Problems for just those banks all for the whole industry. That's after banking -- book. The moment evening and company. But I think I've got a number right at 358. Banks was supposed to make dividend payments to the government. On the top money they'd gotten they can't make those payments med flight for just double the whole business."

" Well I think first call with regard to the 35 banks it may be prudent on her part. To delay. Payment of these dividends because the dividend payment reduces their capital. Many of these banks are having a capital issues at this time. It's that is if they don't -- those dividends to the government they just don't have the pay him at this time but they will crew. There are of course broader problems in the banking industry were continuing to see a relatively high level failures. There is rapidly growing concern about the problems in commercial real estate lending. And we don't expect the problem to our resolve itself. You know within the coming months."

" Yet but that's something we've really concentrated on this program the common problem the coming real problem with commercial real estate. You think about is that may be the big reason. Why banks are holding back capital not paying back the government as that is that may be able to it's commercial realists like this holiday. Well."

" First some companies that is undoubtedly. The case but a number of the banks are also dealing with. Lingering effects of of the housing crisis home equity loans and so forth. But. I would suggested that they actually prudent for these companies at this time. To not pay the dividend and instead to hang on their capital to help cushion them. As they're working through their credit all the problems of all kinds I'm going to blog I I see how it's prudent for them to hold onto that capital. But is it a signal. -- depot bull big a problem that's going to hit us at some point throughout the entire banking industry. Well I think we have a lot of other signals to I think this is just one of many of the continuing credit quality problems in the banking industry particularly as they are merging with regard to the commercial real estate so I don't want to read. Too much into that one particular signal given all the others that we have out there I just why how how strong recovery you can have if the banks are holding back capital -- check it out into the general economy would -- in the that would restrain economic growth. Well the big picture are willing to lend and I don't see this is relating to that I think the problem for many of the banks is finding good credit that is finding good borrowers particularly at a time when many of the better borrowers. Don't want to borrow they're trying to strengthen our balance sheets are paying down the credit card loans and so. Many people who do want to borrow in fact shouldn't be able to borrow because they are. The weaker credit but -- thank you very much indeed the banking expert affecting."