Problem bank list grows

The government’s list of troubled banks hit its highest level since 1993 during the second quarter, although the pace of growth continued to slow. The number of banks at risk of failing rose by 53 to 829, the Federal Deposit Insurance Corp. said. That increase marks the smallest rise since the first quarter of 2009.

While some choose to look at the optimistically, let’s look at it realistically. The number still increased. If we want to be optimistic, let’s wait until the number is not growing at all. After that, we can start hoping for a decline.

The number is almost twice the 415 banks on the FDIC’s watch list a year ago. On average, 13% of banks on the FDIC’s problem list have been seized and shuttered by regulators.

So far this year, 118 banks have failed, with 45 closings during the last quarter.

Banks and institutions insure by the FDIC earned approximately $21.6 billion during the quarter, the highest in three years.


About BizTV

BizTV is the home for your business. Whether you're an entrepreneur, small business owner or just managing your family's assets, BizTV can help. Find the resources you need to manage your money, start your latest venture or grow your business. BizTV, It’s Your Biz!

Posted on August 31, 2010, in Politics & The Economy, Stocks, Bonds, & Funds and tagged , , , , , . Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: