- James I. Clark III
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Ernst & Young Examines Distressed Debt
Ernst & Young recently conducted a distressed debt survey to determine who will be the most active direct sellers of non-performing loan portfolios. The results are interesting.
- 36 percent responded it will be regional banks and thrifts
- 32 percent responded it will be money center banks
- 13 percent responded it will be the United States government
- 11 percent responded it will be insurance companies
- 8 percent had no opinion
With pressure on banks to de-leverage and raise their book capital ratios, it is not surprising that they ranked first. Time will tell.