Problem bank list keeps growing

[marmar]

from CNNMoney:


Problem bank list keeps growing
FDIC says list of troubled banks in 2nd quarter grows to 117 with $78 billion in assets - up from 90 banks, $26 billion in assets in 1st quarter.

By David Ellis and Tami Luhby, CNNMoney.com staff writers
Last Updated: August 27, 2008: 10:19 AM EDT



NEW YORK (CNNMoney.com) -- The number of troubled banks on the government's watch list grew dramatically last quarter.

The Federal Deposit Insurance Corp. reported Tuesday that the number of firms on its so-called problem bank list grew to 117 during the second quarter - its highest level since the middle of 2003. There were 90 banks on the problem list in the first quarter.

FDIC Chairman Sheila Bair expressed little surprise at the increase and warned that the number would grow.

"More banks will come on the list as credit problems worsen and assets of problem institutions will continue to rise," said Bair in a press conference.

The number of troubled institutions has moved steadily higher this year - nearly doubling from 61 at the same time a year ago - as banks across the country struggle to cope with the fallout in the housing market and rising loan losses.

Problem banks typically face difficulties with their finances, or are suffering through operations or management issues that pose a threat to their existence. ......(more)

The complete piece is at: http://money.cnn.com/2008/08/26/news/economy/fdic_banks/index.htm