"That's the first dip below 8,000 in the history of the FDIC, which was created in 1933" (observation ~ has anyone noticed "1933" (1930's) being mentioned consistently?) also, we are told to watch for Delinquencies on commercial real estate loans which remain a source of trouble. That's especially true at smaller and mid-sized banks. also ... read Bob Chapman's prediction below.
May 20, 2010
More banks are troubled even as industry recovers
WASHINGTON (AP) -- The government says the number of troubled banks kept growing last quarter even as the industry as a whole had its best quarter in two years.
The Federal Deposit Insurance Corp. said Thursday that the number of banks on its confidential "problem" list leaped to 775 from 702 in the January-March period. But banks overall posted net income of $18 billion. That was up from $5.6 billion in the same quarter a year earlier.
"The banking system still has many problems to work through, and we cannot ignore the possibility of more financial market volatility," FDIC Chairman Sheila Bair acknowledged. But, she added, "The trends continue to move in the right direction."
The largest banks showed the most improvement. But a majority of institutions posted gains in net income.
In another sign of health, the FDIC's deposit insurance fund, which fell into the red last fall, posted its first improvement in two years. Its deficit shrank by $145 million to $20.7 billion. The FDIC said it expects U.S. bank failures to cost the insurance fund around $100 billion through 2013.
Delinquencies on commercial real estate loans remain a source of trouble. That's especially true at smaller and mid-sized banks.
Last year, 140 federally insured institutions failed and were shut down by regulators. It was the highest annual number since 1992 during the peak of the savings and loan crisis. Last year's failures extended a string of collapses that began in 2008, triggered by loan defaults in the financial crisis.
The pace of bank collapses this year exceeds last year's. So far, 72 banks have failed in 2010. As a result of those failures and bank mergers, the number of FDIC-insured institutions fell to 7,932 in the first quarter. That's the first dip below 8,000 in the history of the FDIC, which was created in 1933.
http://finance.yahoo.com/news/More-banks-are-troubled-even-apf-2854456667.html?x=0&sec=topStories&pos=8&asset=&ccode=
related article ~ Link @
DOOM AND GLOOM ... ALIVE AND WELL ... 2010 ECONOMIC MELTDOWN ...
snip ~
Bob Chapman - First 6 months of 2010, Americans will continue to live in the 'unreality'…the period between July and October is when the financial fireworks will begin. The Fed will act unilaterally for its own survival irrespective of any political implications …(source is from insider at FED meetings). In the last quarter of the year we could even see Martial law, which is more likely for the first 6 months of 2011. The FDIC will collapse in September 2010. Commercial real estate is set to implode in 2010. Wall Street believes there is a 100% chance of crash in bond market, especially municipals sometime during 2010. The dollar will be devalued by the end of 2010. (taken from link above)
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FDIC Bull crap ~ — June 02, 2009 — FDIC is broke, they will pay back your deposits with printed money. Purchasing power of money decreases so that each new dollar printed is worth less than the previous. Truth is that it only worth the paper and ink it's printed on, but that's another story.
