Real Estate developer Stephen Ross raised more than $1.1 billion dollars to invest in sick banks. However after spending over one year looking for good investments Mr. Ross decided the industry was just too sick and gave all of the $1.1 billion dollars back to the investors.

Before returning the money, it should be noted that the firm did find a couple of opportunities, but was outbid by other investment groups.

The banking industry is tied to the economy and in this case with the economy on the verge of a double recession, the 7,500 banks are returning to deep red investments. Mr. Ross noted that he thought the US banking environment could need another 3 years to get back on its feet.

With the economy and next years election on everyone’s mind it is no surprise to see banks having problems. Small businesses can not obtain loans, banks are not willing to work with “at risk” people. And people and businesses that are solid are on hold when it comes to investing. We are in a very scarey trickle down effect. Only time will tell how long it will take for the US to really recover.

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