FDIC puts 416 US financial institutions on ‘troubled banks’ list
28 Aug 2009
The number of troubled banks in the US rose to 416 at the end of June from 305 at the end of March, the highest level in 15 years, said the Federal Deposit Insurance Corp. (FDIC) yesterday.
This is the largest number of banks on FDIC's "problem list" since 30 June 1994, when 434 banks were on the list.
Total assets of "problem" institutions increased during the quarter to $299.8 billion from $220 billion, the highest level since 31 December 1993.
More than 28 per cent of all insured institutions reported a net loss in the second quarter, compared with 18 per cent a year earlier.
Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported an aggregate net loss of $3.7 billion in the second quarter of 2009, a decline of $8.5 billion from the $4.8 billion in profits the industry reported in the second quarter of 2008.
"While challenges remain, evidence is building that the U.S. economy is starting to grow again," said FDIC chairman Sheila Bair in a press release.