Our data confirm that many thrift institutions are well along the road to bankruptcy. The savings and loan industry, if it survives, will shrink sharply. The ripple effect of oil s crash also are moving to housing, creating further problems for lenders.
More failures are likely.
In Texas, the problem is immense. Inc. If they can get through 1988, they ll be lucky. So the banks bid for deposits from other parts of the country. On the other hand, money in problem real-estate loans at New England commercial banks also doubled last year and the real estate owned by the banks on defaulted loans more than doubled. Inc. A lot of companies are recognizing this and throwing in the towel.