Bill Bartmann Predicts 1000 Bank Failures in 2010 And How You Can Profit from the Banking Crisis

March 29, 2010 - PRLog -- Bill Bartmann, the world's leading authority on debt collection, predicts that at least 1,000 banks will fail in 2010.

This figure is more than 7 times the number of banks that failed in 2009.

In 2009 the Federal Deposit Insurance Corp. (FDIC) shut down 140 banks and, in a recent interview for CNNMoney, the FDIC Chairman Sheila Bair said that more banks will fail in 2010.  With the sheer volume of bank failures it's also clear that the rate of bank failure will also increase.  There are currently over 700 banks on the FDIC's troubled list.

The FDIC is currently poised to auction $4 billion in commercial real estate (CRE) assets seized from banks.  Bill Bartmann says that this could be the catalyst that could push a number of smaller banks across the country over the edge.

CRE property values have, on average, fallen by about 40%, resulting in a situation where the mortgage on the commercial is more than what the real estate is worth.  Banks, wanting a higher loan to value ratio, are reluctant to refinance under these conditions.  This situation will therefore, almost certainly, activate a large number of foreclosures.

It's a dilemma that has been simmering away for quite some time.  It's a big problem and one that the FDIC admits is currently unavoidable.  At present there are over 700 banks on the FDIC's problem list.  Many of these FDIC Chairman Sheila Bar says are "cooked", i.e. it's not a question of if they will officially become failed banks but when.

The quantity of failed banks on the market is relatively small compared to what it is expected to increase to.  However, even now portfolios of distressed commercial and real estate loans can be bought for pennies on the dollar.  For instance, in one transaction the FDIC sold a $1.3 billion portfolio of commercial loans for just 10 cents on the dollar.

While this is a bargain price it is not expected that an "everyday investor" will be in a position to purchase such large portfolios.  However, portfolios of credit card loans are smaller making it easy for a small investor to get started in the debt collection business.  And there will be billions of dollars of credit card loans on the market in the coming months.

And this is where even small, everyday investors and entrepreneurs can benefit as they can buy credit card loans for literally pennies on the dollar.  Investors can then collect many times the value of the loans they purchase while still offering those in debt a chance to either make smaller more manageable loan repayments or receive a discount for settling their account in full.

This creates a win-win situation where individuals can profit from this banking crisis while helping individuals caught up within it.  What's more, it's possible to start with a small investment plus get 100% financing for that investment.

The person in debt benefits and the investor can make a significant profit.  It's a unique opportunity and one that Bill Bartmann advises interested individuals to take advantage of now before the window of opportunity closes.

For a FREE Video on how to personally profit from the current banking crisis while helping others to get out of debt visit:

http://www.MakeMoneyBuyingBadLoans.org

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