Rick Bastian says banks are banking on a turnaround for quite awhile. Bastian thinks tight credit conditions and the drop in our net worth will continue to pose big challenges for bank’s bottom lines. He says until we get people back on the job, they aren’t going to buy houses, ultimately causing that recovery to lag.
Bastian thinks the banking industry will be ok when earnings increase and non-performing loans decrease. But that, he says, could be at least a year away.