Fitch Says Worst of Credit Storm is Over for US Banks

Fitch Ratings suggests the worst of the credit crisis is over for US commercial banks, though there is still some clean-up to be done.

In its Quarterly Review of the 30 largest US banks, Fitch gives the credit crisis a meteorological workout:

“The long dreaded, broad-based deterioration in consumer asset quality escalated during 2Q08 like the sudden movement of a tropical storm. Much like weather forecasts and storm warnings, no matter how many dire predictions before the storm, the reality of the storm’s destruction and devastation always seems to take everyone by surprise. In common with the high winds at the leading edge of the storm; loan loss provisions do the most damage and make the most noise. Similarly the increases in non-performing loans and net charge-offs are much like the collateral damage that takes months and, in some cases, years to fully clean up and rebuild.”

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