Troubled bank list balloons to over 700, doubling from 2009

February 24, 2010 by · Leave a Comment
Filed under: Bank Failure 

That is a staggering figure, 1 in 11 banks are at risk of failing in this country.  Even though the media and politicians keep talking about a recovery, the facts on the ground support that we are not out of the woods.  We still have plenty of debt in our financial system that is over-valued and needs to be written down or defaulted and until that happens we will not be able to let our normal economic indicators works as they would like having normal rates of interest without massive government programs that are backing much of our financial industry.

CNN, New York – More than 700 banks, or nearly one out of every 11, are at risk of going under, according to a government report published Tuesday.

The Federal Deposit Insurance Corp. said that the number of banks on its so-called “problem list” climbed to 702, its highest level since June 1993.

The number of banks under scrutiny by regulators has moved steadily higher since the recession began. Just 76 financial institutions were on the list in the fourth quarter of 2007.

Banks that end up on the problem list are considered the most likely to fail because of difficulties with their finances, operations or management.

Still, few of the lenders that are on the list actually reach the point of failure. In fact, just 13% of banks on the list have been seized and shuttered by regulators.

Click Here to Continue Reading

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!