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Tuesday, August 26, 2008

FDIC adds 27 banks to "problem list"

In a sign that banking industry is still working through the credit crisis, the Federal Deposit Insurance Corp. added 27 banks to its list of "problem" institutions this afternoon, but don't look for a list of names.

The government agency that insures deposits only provides aggregate information on banks that are in a squeeze. For the quarter ended June 30, the FDIC said the number of banks on the problem list rose to 117 from 90. It was the seventh quarter that the list expanded since it reached a low of 47 as of the third quarter of 2006.

Even more troubling is that the ones added to the list appear to be large. The FDIC said assets of "problem" institutions rose from $26.3 billion to $78.3 billion.

As bad as all that sounds, we're far from the carnage that was inflicted by the savings and loan crisis. For some perspective look at this chart on the FDIC site.

It shows how the nation's banks have seen bleaker days since 1990.

But for anyone hoping the yearlong credit crunch was nearing the end, this quarterly report shows the stresses migrating from the banks on Wall Street to the ones on Main Street.
Posted by Mike Armstrong @ 1:02 PM  Permalink | 1 comment
Comments   
  • 0 like this / 0 don't   •   Posted 2:59 PM, 08/26/2008
    WHAT'S IN YOUR WALLET? NEWSWIRE--A Kansas bank has become the ninth closed by federal regulators this year, amid bad real estate loans and falling housing prices. Not dollars or drachma or krona or kips, No sheqel or shilling or rand, Not ruble or rupee or money in clips: No sawbuck, a fifty, a grand. Not penning or fenning or guilder or gold, No euro or florin or francs, What we're counting today is not bills that will fold, But banks. www.newsandverse.com Light verse, ripped from the headlines
    — newsandverse


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About Mike Armstrong
Mike Armstrong, a business editor and writer for nearly two decades, is the Inquirer's business columnist and PhillyInc blog editor. Contact Mike via e-mail or at 215-854-2980
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