Courtesy of Mish.
Reader Wendy pinged me with a question I have no answer for: What happened to the Fed data series on non-performing loans?
Here is the link: Assets at Banks whose ALLL exceeds their Nonperforming Loans (LLRNPT).
Reader Wendy writes …
The original series showed how banks always had 90% or above allowance for loan and lease losses until the 2008 financial crisis. It then dropped like a stone to 15%. It has been gradually struggling up since then and is now 35%.
The old data series showed how pathetically inadequate the reserves are and how slow the recovery (actually, non-recovery since about 2/3 of loan and lease losses are not covered!).
The new series makes the "recovery" look significant. I'm amazed that the Fed did this.
Mish, please take a look at this and comment to your wide readership.
Wishing you a very Merry Christmas,
Regards,
Wendy
Hello Wendy, Merry Christmas to you and all my readers as well.
I do not know when this happened, or why, so I cannot comment on that. However, I have a few historical charts to show from late 2009, and I have some thoughts on the data series following the charts.
Current Truncated Chart
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