The Bank of Wyoming was shuttered by the FDIC on July 10th making it the 53rd bank failure this year.
The concern for local banks is that many of them are hard-wired into the commercial property market, specifically commercial property values.
While most of the residential mortgage loans were securitized and sold to Wall St., commercial loans typically were portfolioed and held by local banks.
The result is that as asset values for commercial real estate continue to plummet, additional pressure will be put on local banks balance sheets. The solution is to stop falling asset values by stimualting demand for them with new fiscal policy.