Two more banks reveal write downs

Bloomberg reported that Suntrust Banks, Inc. and Fifth Third Bancorp are posting profit declines to cover defaults.  Defaults in Florida and Michigan are extremely acute.  The sub-prime crisis and the receession are causing defaults on credit cards, home equity, and auto loans.Â

“We expect credit conditions to continue to deteriorate,” Fifth Third Chief Executive Officer stated.  This statement conflicts with statements made by financial pundits who claim that the end of the banking downturn is in sight.  In my opinion the banking crisis will continue to grow along with the deterioration of the economy.  As the economy goes, so goes the health of lenders.