SunTrust CEO James Wells III says “the industry is a long way from declaring any sort of victory, especially regarding credit issues,” reports Bloomberg. “This credit cycle has yet to play itself out. We do not expect things to improve for the banking industry in the very near future.” SunTrust has reported three straight quarterly losses, stemming mostly from loans that fell through in its $16.3 billion home-equity and $8.2 billion construction lending units. “The industry has moved from a potentially cataclysmic scenario to one that is merely very difficult,” Wells said. “The industry is back from the brink of a potential global financial-system meltdown.”
SunTrust CEO Wells Says Banks Face More Losses
SunTrust CEO Wells says the industry has a road to recovery ahead.
August 24, 2009