Wall Street Journal (08/13/08) P. A1; Hagerty, James R.; Karp, Jonathan
Bank stocks are falling as banks unload foreclosed properties at discount prices, in some cases shaving 50 percent off the home's price of just two or three years ago. Banks also are being hit hard by rising delinquencies and foreclosures on prime loans and property-tax surcharges imposed by many local governments, with share prices falling 9.5 percent for J.P. Morgan and about 12 percent for both Lehman Brothers Holdings and Wachovia Corp. on Aug. 12. Losses could rise dramatically, as Barclays Capital expects a 60-percent jump in bank-owned homes from 721,000 currently--up from 112,000 in 2006--by the latter half of next year.
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