FDIC Problem Bank List Increases to 305 Banks
The FDIC released their quarterly report on troubled lenders and their problem bank list has grown by 50 banks in the first quarter making the total number of troubled banks 305. This is the highest number since 1994. If you’re looking for specific names on those lists you’re out of luck. The FDIC does not disclose which banks they have on their list intentionally. Disclosing such information would cause a flood of customers withdrawing their money all at once which would surely cause these troubled banks to collapse.
The total assets in the troubled banks rose to $220 billion, which is a 38% climb over the previous quarter. The FDIC’s insurance fund has also slimmed down by 25% this past quarter, bringing their reserve to the lowest level in 15 years.
We’ve seen federal regulators take over 36 lenders so far this year including Bank United FSB most recently.
The FDIC did note that the earnings reports of US banks has been the best it’s been in 4 quarters. FDIC insured banks had a net income of $7.6 billion in their first quarter this year, which compared to their $36.9 billion loss in the 4th quarter last year, is a step in the right direction.
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