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.
Posted on August 31, 2010, in Politics & The Economy, Stocks, Bonds, & Funds and tagged bank, bank watch list, banks, fdic, fdic watch list, Federal deposit insurance corp. Bookmark the permalink. Leave a comment.