FDIC: Now 775 'Problem Banks'
List is at Highest Level Since 1993 The Federal Deposit Insurance Corporation's "Problem Bank List" rose to 775 in the first quarter of 2010. This number is up from 702 troubled banks at the end of 2009, according to the federal regulator. The total assets of "problem" institutions also rose during the first quarter to $431 billion up from $403 billion.The FDIC says these levels are the highest since June 30, 1993, when the number and assets of troubled banks was at 793 and $467 billion. One bright spot in the FDIC's announcement is that the 73 banks added to the list in the first quarter amounted to the lowest number of banks added in the last four quarters.
FDIC Chairman Sheila Bair notes in a statement that "There will be more failures, to be sure. The banking system still has many problems to work through, and we cannot ignore the possibility of more financial market volatility." Bair says the trends continue to move in the right direction.
The FDIC says 41 banks failed during the first quarter of 2010. The majority of institutions that are placed on the troubled bank list do not fail. The total number of failed institutions to date in 2010 is 80, with 72 banks and 8 credit unions.
