1,000 Banks Could Fail In Next Two Years: John Kanas (VIDEO)

Up to 1,000 banks could fail in the next two years, private equity chief John Kanas told CNBC in a recent appearance. Kanas' high-powered private equity conglomerate -- which included the buyout titans like the Carlye Group, the Blackstone Group and W.L. Ross -- bought Florida's failed BankUnited in May.

According to Kanas, the second wave of failed institutions will include hundreds of smaller banks. "Many of these [failed] institutions no body has ever heard of," Kanas said. "It augurs poorly for smaller business mangers," he added. "Very small banks tend to lend money to small businesses -- this exacerbates the problem for small companies."

More from Kanas:

"Government money has propped up the very large institutions as a result of the stimulus package," he said. "There's really very little lifeline available for the small institutions that are suffering."

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Comments

[Aristofaness]

The fed need to borrow the cheap money directly to bussinesses and consumers before is tooooo late, the banks are looking for profit and the economy in main street is suffering, If the banks increase fees and rates the economy of most of consumers is going to colapse, They need to understand that IS NOT time to be looking for marvelous profits, IT'S TIME FOR A RATIONAL CAPITALISM AND TRY TO HELP CONSUMERS TO SURVIVE, NOT TO TERMINATE THEM.
50% OF THE SOLUTION TO THE ECONOMY IS BORROW TO CONSUMERS WITH ZERO INTEREST.
FED BERNANKE AND CONGRESS;
OPEN YOUR EYES!!!!!
DO YOUR JOB!!!!!, HELP THE ECONOMY!!!!
PROTECT CONSUMERS AND IN THIS WAY YOU CAN SAVE THE ECONOMY!!!!!
BORROW THEM THE CHEAP MONEY!!!!
BEFORE IS TOOOO LATE
YOU CAN SAVE THE MOTOR OF THE ECONOMY (THE CONSUMER) IN THIS WAY

[MuchMadness]

Oh, yes. And we all know what a respectable news organization CNBC is. It is not at all a mouthpiece for the rich, greedy, and selfish. Oh, no, not at all.

[tuberider]

AMERICA: FOR SALE! LOCK, STOCK and BARREL.

[watchTVgetSTUPID]

TYhis time around we will not have a 1930s style Great Depression. Because the FED is committed to loose money. The difference is large compound inflation that will selectively wipe out sectors of the economy that depend on discretionary spending. For those sectors, in 2010 through 2015, they will be in a depression with no recovery and simultaneously the necessities will double in price. i.e. Medical = semistable economy and hotels/tourism =bad economy.

The day China pulls the plug on the dollar is the day the Empire ends. All bets are off

[not going2take it]

This is not news . . . this is reality . . . keep talking!

Speak the truth . . . we . . . most of us here, already know this FACT!
we are paying attention to the state of the economy.

YA Right . . . we are nearly out of this recession.
IT HAS O N L Y begun!

[solarian]

how much fed money did he get if any don't know

[PhilipTaylor]

All BUT THE ONES THAT SHOULD:

FAKE Government FUNDED PROFITS hide “Off-Balance-Sheet” Toxic Derivatives according to 0ffice of Comptroller of Currency, 0CC, quarterly Report:

1 JPM0RGAN $81TRILLION in Toxic Derivatives
2 BofA $78TRILLION
3 G0LDMAN $48TRILLION
4 M0RGAN $39TRILLION
5 C1T1GROUP $32TRILLION

http://www.occ.gov/ftp/release/2009-72a.pdf
Page23!

[Kassandra]

Depression; when are they gonna start calling it that?
They may have "studied the Depression", but I think they took the wrong lesson from it...or the right ones for the 1%

[blindhog]

If he's right and he probably is, this will again be a big giveaway of taxpayer money to the BIG banks.

The big banks never made loans to these small businesses that have failed. It has been the smaller banks.

These small businesses have suffered and gone under because of the bad economy brought on by the mismanagement and greed of the large wall street banks (who, by the way, have been saved with billions and billions of Bush's TARP money (our tax money)).

Our money will guarantee the money lost in these small banks.

The big banks, which we bailed out with our tax dollars, will buy up the assets of these small banks at prices that are penny's on the dollar.

LOSERS---TAXPAYERS!!!!!!!!!!!!

WINNERS---BIG BANKS AND THEIR MEGA-RICH STOCKHOLDERS AND DIRECTORS!!!!!!!!!!!!!!!

[TrippleZero]

The banks don't get this money for nothing.....they have to pay it back and several banks have paid TARP money back with interest.

I'm a big fan of CITI, AIG, Fanny and Freddie. If you bought stocks or options a month ago in these co.'s you would be a BIG WINNER also.

[steppenwolfsayshi]

Will the 4 months at 12% make up for the upcoming stock market crash of the these zombie banks, the decade of zero wage growth or the 10-15% inflation I will have to start paying in about two years to continue to prop them up?
I don't think I'm making money.

[salkoc]

these smaller banks are too small to make a difference . the fdic has increased fees to make up the difference ....i see more mergers and buyouts ........remember there are foreign entities will gobble up these banks.

[salkoc]

many doom sayers have been babbling for the last 3500 points .....please stop ambarrasing yourselves ......its called an OBAMA BULL MARKET .

anyone ever ask mr kanas if hes SHORT THE MARKET ? i didnt think so .....these guys are all in it for themselves ....they talk down things so they can own it .....because most missed it .

the banks that will fail will be engulfed by mid / larger banks ....the largest banks are financially stable and thus this market will keep running.

how is limbaugh feeling right now ......mr genious told everyone to take money out of market because it was going to zero because of obama ...........WRONG . IM actually awaiting his next great prediction and doing the opposite . i think hes bashing real eastate......looks like its time to buy .

[blanco]

Just what all of the marxists want---right reid-pelosi-prez osama ---yes, osama, cuz both of them are out to ruin America!

[mjeffn]

RAPTURED. I got dibs on all your stuff.

[bbrecht]

Hilarious

[Forest]

War profiteering, deregulation, cynicism towards the American people and mismanagement have brought us to our knees. Where is Robin Hood when we need him?

[BannedNBoston]

Commercial real estate is going down the tubes next 2 years.
Many loans cannot be refinanced when they are paid off.
Many are defaulting now.

[Melissa]

We are being lied to everyday from the White House, Congress, and the news media.