Bad loan portfolios in Texas have prompted...

Bad loan portfolios in Texas have prompted the state’s banking chief to increase projections on the number of 1988 bank failures from 50 to 70. “Bank failures have not subsided during the first part of 1988 and, in fact, are running ahead of last year’s pace,” said Texas Banking Commissioner Kenneth Littlefield. “We have not seen a turnaround.” Last year, 50 Texas banks failed, a national record. So far this year, 23 have failed. Another 179 state-chartered banks are on the regulators’ problem list and Littlefield said few will last until the state economy rebounds.