FDIC's troubled bank list grows to 305
Filed under: Economy
The Federal Deposit Insurance Corp. says its roster of "problem" financial institutions grew to include 305 banks and thrifts in the first three months of this year, a 21 percent jump from the final quarter of 2008 and the most since 1994.Banks that make the list aren't doomed, but they face financial hurdles that put them at a greater risk of failure. Beset by rising losses on home mortgages, consumer credit cards and commercial real estate loans, 36 banks have been seized by regulators this year.
The sharp rise in banks on the FDIC's watch list suggests many more failures could be coming.
"Banks are making good efforts to deal with the challenges they're facing, but today's report says that we're not out of the woods yet," FDIC Chairwoman Sheila Bair said in a statement. "As I see it, we're now in the cleanup phase for the banking industry."
The FDIC said the troubled banks boasted total assets of $220 billion, up from $159 billion at the end of last year.
Though the number of banks on the list gets a lot of attention, it comes as part of a quarterly update on the health of the banking industry that includes plenty of other measures of the sector's health. FDIC-insured banks posted total profits of $7.6 billion in the first quarter, down 61 percent from a year ago, according to the report. That's a significant improvement over last year's fourth quarter, when banks lost a combined $26.2 billion as the financial crisis worsened.
Nevertheless, banks insured by the FDIC charged off $37.8 billion in bad loans during the first three months of the year, nearly twice as much as during the same period a year earlier. "Troubled loans continue to accumulate, and the costs associated with impaired assets are weighing heavily on the industry's performance," Bair said in the statement.
The names of banks on the list are kept secret to prevent runs that could destabilize them further. And Bair has pointed out in the past that on average only about 13 percent of institutions on the list ultimately fail.
But given the pace at which regulators are seizing failed banks this year, those anxious to learn the identities of financial institutions in trouble do have one option: Just wait.
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Reader Comments (Page 1 of 2)
5-27-2009 @ 4:02PM
NICK said...
Nice work Obama and Rahm yoiur really in charge of the banks, what is wrong with your tax cheat at the Sec of Treasury??? And I think the left wing media has been building up the Monica of the FDIC, she carrys a good line, she is looking for something, really runs her mouth alot, wonder when she gets time to do her real job, I know I was in governmenjt and the slugs are making her look good.
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5-27-2009 @ 5:03PM
Rusty said...
one thing you can depend on from the neocons- they are illiterate, can't spell, express themselves poorly..... just dumber than a sack of rocks.
5-27-2009 @ 9:33PM
MILT BAER said...
It would be a good idea to name banks in trouble!
5-27-2009 @ 4:19PM
Donovan said...
As more people that suffer job loss, the more the banks/credit card issuers raise credit card interest rates. The more this is going to cause consumers into defaulting on their payments.
The banks have caused their own financial demise, brought on by their own greed for money. And their current actions, and business practices, will cause them even further financial distress. If not, total failure. Its only a matter of time.
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5-27-2009 @ 4:48PM
joe said...
TO ALL THOSE IDIOTS THAT VOTED FOR A CHANGE; YOU DID GET A CHANGE; YOU BETTER LEARN CHINEESE; BECAUSE MR OBAMAPUT US INTO THIS MESS; AND STOP BLAMING BUSH;YOU ARE A BUNCH OF JERKS.
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5-30-2009 @ 10:15AM
Sam said...
What are you smoking? Obama put us in this mess? That's a load of bull. Bush put us here - he was in 8 years, not 5 months. The trouble started on his watch, not Obama's. The mess is being cleaned up, and Obama is playing janitor to the mess. Ironic how some morons out there are so full of it!
5-27-2009 @ 5:10PM
Donovan said...
No one can tell me Bush didn't have a clue what was going to happen. Bush just elected to ignore the facts, and address the financial issues prior to them going to far to fix. Bush started this bail out BS. And Obama is only adding insult to injury, with his lavish over spending, and continued billions in bail out funding. Has Obama thought about how the tax payers are going to be able to afford to pay all these billions back? Its tough to be able to pay tax's when one is unemployed. Now we get to pay tax's on the tax's we've already paid. Thanks to our Governments uncontrolled spending spree. Obama made a statement that totally pi$$ed me off. He said credit card users should not spend or live beyond their means. Well, neither should our Government elected officials be spending BILLIONS they don't have to spend. Tax payers are being turned into Government human loan repayment workers.
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5-28-2009 @ 8:09AM
ellie said...
and Mr Obama has the right idea?. i dont think so, It appears his agenda is to change this country forever, socialism path or perhaps fascism. either one is not acceptable!!! Greed caused this issue , both parties are at fault. perhaps we need new blood in washington, Lets pray we all wake up in time and take back our country.
5-27-2009 @ 5:12PM
Rik said...
Names of banks are kept a secret, what a crock, protecting these ailing banks and putting the customers at risk, that's part of what's wrong in this country, just come clean and let the customers decide if they stay or go, for once, do the right thing, try some honesty, might start to restore some integrity to the business world instead of protecting those who caused the mess with their shotgun lending and conspiring to make big bucks on risky deals.
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5-27-2009 @ 6:15PM
Joe said...
The banksters are running/ruining this country. http://intermexfreemarket.blogspot.com/2009/04/cfr-corporate-members-get-lions-share.html
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5-27-2009 @ 10:22PM
Brian Puglisi said...
That was a very good article. The CFR the TrI Latteral Commission and The Bilderberg Group controll all of the worlds money supply and have the capability to totally collapse economies for their ultimate goal of world domination. They are the shadow government who pull the strings of our leaders who are basicly the fall guys in the scheme.
5-27-2009 @ 8:12PM
Brian Puglisi said...
It is all smoke and mirrors what the press and Wall street want you to know. Do you really believe that this garbage is not predetermined? Watch this video on this link
//www.youtube.com/watch?v=eAaQNACwaLw
it is a real eye opener. Bush Obama Clinton all of them are the same crap.
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5-27-2009 @ 8:14PM
Brian Puglisi said...
It is all smoke and mirrors what the press and Wall street want you to know. Do you really believe that this garbage is not predetermined? Watch this video on this link //www.youtube.com/watch?v=eAaQNACwaLw
it is a real eye opener. Bush Obama Clinton all of them are the same crap.
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5-27-2009 @ 8:46PM
B.O stinks said...
YES WE CAN ! ruin America and make it a socialist third world country where we all drive the same size and color obama cars ! stupid libhurls !
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5-27-2009 @ 9:11PM
Joe said...
Brian-the link did not work
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5-27-2009 @ 9:18PM
chris said...
305 BANKS AND INSTITUTIONS ... OH , COME ON MEDIA PEOPLE .. I WANT TO SEE THE FULL LIST POSTED . I DON'T CARE HOW MUCH ROOM IT TAKES . THE PUBLIC HAS THE RIGHT TO SEE THE LIST .. THESE ARTICLES TALK TOO MUCH ABOUT CERTAIN BANKS .. I WANT TO KNOW THE NAMES OF ALL OF THEM SO THAT I WONT BANK WITH THEM ..
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5-27-2009 @ 9:23PM
B.O stinks said...
Give them MORE bama Bucks so our great grandchildren have something to pay for.Stupid f#ckin Libhurls I HOPE you are all unemployed !
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5-27-2009 @ 9:27PM
B.O stinks said...
Of course they are failing and will keep failing as long as people ( like me ) take their hard earned money out and hide it from Robin the Hood Obama !I HOPE you like the GLIMMER= formally hope and change ! stupid f#ckin libhurls !
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5-27-2009 @ 9:38PM
B.O stinks said...
Buy gold hide your money from the libhurl spread machine let all this fail the sooner the better !
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5-27-2009 @ 10:26PM
pasinby1 said...
This shouldn't amaze any one , obama hasn't mete his quota yet !
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