Financial Times FT.com

US regulator fears wave of bank failures

By Daniel Pimlott, Krishna Guha and Joanna Chung in Washington and Ben White in New York

Published: April 22 2008 23:52 | Last updated: April 22 2008 23:52

US bank failures could rise above “historical norms” as a weakening economy puts pressure on badly underwritten loans, particularly in commercial real estate, according to a bank regulator.

In an interview with the Financial Times, John Dugan, who oversees about 1,700 national banks as comptroller of the currency, said the growing problems for lenders follow a period of almost four years in which no institution regulated by his agency had failed.

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