U.S. problem bank list climbs to 829

September 2, 2010 by · Leave a Comment
Filed under: Bank Failure 

It really puts it into perspective that last year this time, this troubled bank list was only at half the size it is today.  This happened in the backdrop of a supposed recovery.  We are at 118 bank closures for 2010 on track to hit 150 by years end.  We are going to have a bumpy fall.  Good luck!

CNN – 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, according to a government report released Tuesday.

The number of banks at risk of failing rose by 53 to 829, the Federal Deposit Insurance Corp. said in its quarterly survey of the nation’s banking system. That increase marks the smallest rise since the first quarter of 2009.

However, it’s still nearly double the 416 banks that were on the FDIC’s watch list a year ago and is up from 775 in the first quarter of this year.

Banks that end up on the problem list are considered the most likely to fail. But few of the lenders on the list actually reach the point of failure. On average, just 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.

Source

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!