U.S. Bancorp, Minnesota’s biggest bank, is facing a similar fate of the other super-regional banks such as Downey Savings, National City, Bank United and others as loan losses continue to mount for the lender. Loan delinquencies have risen in the Northern part of the country and U.S. Bancorp is feeling the pinch.
As we looked at the other day, more banks are going to be in trouble in the near future. Unfortunately it will be these super-regionals who lent a ton of money when money was cheap but do not have the balance sheet or the means to raise new capital to protect against these losses.
More from Bloomberg:
U.S. Bancorp, Minnesota’s biggest bank, said second-quarter earnings slumped 18 percent as more customers fell behind on loans. The shares fell as much as 12 percent in New York trading.
The bank more than tripled its provision for credit losses to $596 million from $191 million second-quarter 2007. Assets for which U.S. Bancorp no longer received interest rose 34 percent to $1.14 billion from last year as more homebuilders and homeowners fell behind on their payments.
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