U.S. banks suffer 149 percent rise in bad loans

[sabra]

Source: MSNBC

New data on each of 8,000 banks show the breadth of recession's impact

Foreclosures and bad loans raced through the banking industry in 2008, with the more than 8,000 U.S. banks registering a 149 percent increase in troubled assets, according to a new analysis of bank financial reports to the federal government.

While a large majority of banks were still healthy, 163 ended the year with more troubled loans than capital, up from only 13 a year earlier, according to the analysis of data from the Federal Deposit Insurance Corp. by msnbc.com and the Investigative Reporting Workshop at American University in Washington, D.C.

Nationwide, seven out of every 10 banks were less well prepared to withstand their potential loan losses than a year earlier. The analysis relies on information reported quarterly to the FDIC, calculating each bank's troubled asset ratio, which compares troubled loans against the bank's capital and loan loss reserves.

Although attention has focused on the largest banks, which hold the lion's share of deposits, the analysis shows how widespread the problems in the banking industry became in 2008 as the mortgage meltdown and broader recession unfolded. Msnbc.com is publishing information on the nation's 400 largest banks as well as all banks with high ratios of troubled loans at year’s end. And the American University group has created a new Web site, BankTracker, to provide information on the financial health of every bank in the country.

Read more: http://www.msnbc.msn.com/id/29619163/

[msongs]

1. so banks conducted their business in a stupid and/or illegal way so we should bail them out? nt

[Name removed]

4. Deleted message

Message removed by moderator. Click here to review the message board rules.

[No Elephants]

6. Either we bail them out directly or we let their insurer, AIG, make them whole and then.

bail out AIG some more.

Onw way or the other, we're so screwn.

[jordi_fanclub]

2. Seems U.S. tax payers suffer a high percent rise in bad bank BONUS too! (n/t)

[mbperrin]

3. Yes, replacing local bank officers with decision making powers on loans

with the Fsir Isaac magic numbers, farmed out applications, and automated decision-making has worked very well for banks, hasn't it?

As my Industrial Organization prof used to say: "Bigger isn't necessarily better. Unless you like really big cowpies."

[Pale Blue Dot]

5. But Citibank's doing GREAT!

All this economy really needs is more optimism! :eyes:

[No Elephants]

7. Phil Gramm, is that you?