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All right while -- think it is just the big banks that have headaches these days of bad loans they began property loans.
That are going -- are causing some big troubles for some small Florida banks joining us now to talk more about this.
Is Alex Sanchez he's president of the Florida bankers association.
Sanchez Brian Sullivan thank you very much for joining us here on Fox Business.
Three more banks trying -- go -- Brian great to be Richard great to be.
Which you from Tallahassee Florida and thanks for having me on today we'll say that after the -- don't get by.
Ha ha ha -- three more banks failed.
Going into the -- and I think the total of 84 banks that have failed this year.
Are the bank problems in your neck of the woods in Florida are they getting better or they getting worse.
-- you know you gotta look at things historically and I know we've had 84 bank failures so far this year -- But Bryant.
Our industry has -- our country have been through tough times before we're gonna come out of this -- we've come out of -- smarter and better.
It was not -- forget now -- in 1990 we -- 400 bank failures in the United States followed by 275.
And 1992 and finally in 1993 was fifty so.
While 81 is high and we're not happy about it and it obviously and in tough economic times.
You're gonna have some bank failures where no where near the lows -- we've had just a decade ago ago so.
What we're we we feel confident in bush here in Florida.
Well you know listen some of the data that we've gotten I think we have a couple charts on this if you look at loans that are being paid back -- called non accrual basically means that the written offer not going to be paid.
If you look at what banks are doing -- showing our viewers a chart if you have a banks are doing to adjust their own reserves for losses that's the blue chart.
It's go one up towards fewer banks are being paid and more banks are making larger allowances.
Expecting they will not be paid that that looks bearish.
Well -- Brian you know that's true but you know our banks in in recordings were working with our regulators and you know we're we have really -- from the state and federal prospective.
On a national basis -- banks' -- 67 billion dollars more in the second quarter which is.
Which is about sixteen and a half billion more than we did last year so.
You know we are reserving in -- quarters with the rules and regulation.
Awful -- reserves and another word for rainy day fund.
And and that that's the untold story of our industry of the billions -- tens of billions of dollars and we have reserves.
To cushion just in case some of these loans do go -- but mode but more -- -- will more Florida banks are likely to go under before the -- the -- that a fair statement.
What what will Brian Billick you know we've had six -- that we're in the next senses will be the third largest state in the United States of America.
Our population from the last senses to the next sentence will be nineteen million approximately.
And you don't why we've had six bank failures this year six.
I mean you know look that's six to -- I admit but you know what in the scheme of things that's not really that many compared to.
Other areas of our country so an end -- -- -- look at real estate that figures that just came out and I have right here fresh off the presses they say.
Look in south -- Home sales residential single family home sales from July of this year compared to July of last year.
In Miami Dade County -- -- 64%.
In Broward County the county to the north as you know is up 56%.
And in Palm Beach County.
It's up 32% so.
All of -- nineteen million residents we have in night tri county area of -- Proud of Palm Beach about seven million of our residents and that is obviously the highest concentrated populated area our state at home sales are up -- Brian -- that means.
People are getting back in the market are investing and home prices -- sort of stabilizes.
Well -- and that is that is good good -- that is good news and maybe instead of asking why so many banks.
Not in Florida but around the country are having problems maybe we should ask.
Were there too many banks -- did banks with bad business plans it created big bad loans to people bad credit you know it's sort of the holes -- -- bad if you will.
How do you prevent ten years from now what -- twenty years from now when it's a new generation of reel to real estate investors.
How do you prevent the same mistakes from happening again.
Well and that that Brian that's why I mentioned earlier I think everyone including the regulators and on an issue will come out smarter and better out of this.
And and obviously you raise a good point but.
I think that you know it's it's Sheila Bair the chairman of the FDIC pointed out.
It's times like these line is why we have an FDIC and and that's why the American public everyone viewing this program.
Can can take comfort in knowing sleep like a baby tonight Brian knowing that no one is ever lost a dime Brian.
In an insured FDIC account since -- Franklin Delano Roosevelt signed that bill to legislation in 193 victory that the safest place in the world.
To keep your money and and our -- -- are bankers today in South Florida and throughout Florida.
Are making dreams come true we're making now -- you know Floridians are buying homes.
Starting small businesses keeping their small businesses -- working with the SBA.
On that so I I think that you know there's a lot of good things happening in our state we have a new investors that are coming and yeah our state.
Investing money in that that shows that confidence in our state where tens of millions of dollars -- to be invested in.
And now banks in our state that shows that there are investors outside of Florida who who quite frankly -- -- bullish on Florida.
And that is listen that's good news you want to hear good news from Florida and Alex Sanchez.
As long as my Virginia Tech Hokies beat up on the Florida State Seminoles -- CC it's all good news.
Well all right how about my hurricanes -- -- my -- if I -- let's Buffett.
But we're frankly I -- one last thing go ahead -- That I'm really concerned about in congress you know congress you know we're regulated by the Federal Reserve Bank the OC CBOT.
The FDIC and of course the state banking regulator.
Let's not forget Brian the shadow banking industry that needs to be regulated -- not one had yet his role at the SEC because of Madoff.
You know what -- what is you know this consumer protection agency that they're proposing.
How about them applying those rules to the the rating agencies I mean they're they're going on touch right now about the mortgage brokers Bryant who gave.
Most of these toxic loans.
In according to what the president said his white paper that 94% of the toxic high cost mortgages came from the non FDIC.
Banking world now from the banks before non banks.
I've got those those -- -- -- at those go to the points that we're making earlier though but I -- -- and I'm I'm not throwing the blame around that the blame extends the entire chain.
Alex but at the same time.
You know you can offer me anything you want but it's up to you to accept -- to -- don't consumers have a role in this as well you can push all the toxic.
Mortgages you want.
But -- also want to the population to be better educated about things like arms and hybrid and negative amortization hybrid option arm.
Right that's that's true good point -- and that's why I urge people would go to an FDIC bank.
Good crime beat them for their biggest investment of their life the purchase of a home.
Brian let me say this to you before the recession 60% of the lending market was controlled by non banks if you call most of those 60% players.
You will get the message to do on the phone -- that the number you have -- has been disconnected.
The banks are still around.
Yes we've had 81 failures nothing compared to the 400 we had in 1990 that failed so you don't relatively speaking back Brian -- -- to our bench was strong.
Of the banks in the country are still determined to be well capitalized your -- and -- and of course in Florida that includes Florida as well so you know what.
We're we're -- we think -- are brighter days are ahead.
In our state as well as our industry across the country Melissa.
We we hope we we we hope you're right.
We'll get you back on soon now to talk more about some of these other issues you brought up guys there they're all hot button issues you welcome back at a time and -- Miami beach Virginia Tech.
Now get out -- -- -- -- up president of the -- bankers association thank you very much.
Okay Brian thank you.
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