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New Press Release Category, U.S. Bank Failures - StockReserchPortal.com

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January 21, 2010

Good Morning:

New Press Release Category, More On U.S. Bank Failures

New Press Release Category

Yesterday we added an 18th Segregated Press Release Category to StockResearchPortal.com - 'Operational Updates'.  We have developed an automated system that sorts Press Releases for Subscribers by Press Release topic, saving them the time and energy required to read all Press Release headlines to find Press Releases of interest.

'Operational Updates' is located on the right side of our Home Page under 'Today's Press Releases', and in each of our Company Data Pages. Press Releases are updated in real time each trading day on both.

More On U.S. Bank Failures

Following from Monday's e-mail - where I said I would follow-up on U.S. Bank Failure data - I found an article dated December 19 titled 'FDIC expects number of U.S. bank closures to accelerate next year'.  The article reported 140 U.S. bank failures in 2009 to mid-December (up from 25 in 2008, and only 3 in 2007), and that The Federal Deposit Insurance Corporation ('FDIC' - the U.S. receiver for failed banks) is preparing for a greater number of U.S. bank failures in 2010 than was experienced in 2009 - apparently planning to  increase staffing levels in 2010 by 23%.  It strikes me as significant in the context of changed U.S. economic conditions that there were only 3 bank failures in 2007.

A second article this past Monday titled 'Bank Closures Accelerating as FDIC Seizes Fourth Bank of 2010' says 4 banks have closed in the first two weeks of 2010 (one more than occurred in all of 2007) - auspicious to say the least.

From what I have been able to determine, most U.S. bank failures can be directly connected to bad residential and commercial mortgage loans.  Relative to that, a 'Seeking Alpha' article this morning written by Andrew Horowitz titled 'More Government Spending Fails as Homebuilders Confidence in a Free Fall' says the U.S. Homebuilder Confidence Index - generated by The National Association of Home Builders and Wells Fargo - has dropped this month to the lowest level (15) since last June - where readings under 50 apparently mean most respondents view conditions as poor.

It seems to me that given continuing U.S. increasing unemployment it is unlikely the U.S. housing market is going to turn around in the near-term.  Assuming that to be the case, it becomes more understandable to me why the FDIC is 'staffing-up' in anticipation of a further increased number of U.S. bank failures in 2010.

Again, I consider the number of bank closures going forward to be well worth focusing on when considering one's investment strategy.  I am a long way from believing the U.S. currently is experiencing meaningful economic recovery, and escalated bank failures will do nothing but reinforce that for me should they occur.  I also continue to see a serious disconnect between multiple factors that on their face strikes me as negative to U.S. recovery and the recent buoyant U.S. equity markets.

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Best Regards,

Ian R. Campbell's Signature

Ian R. Campbell
President
StockResearchPortal.com

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