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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, CNNMoney.com staff writer Last Updated: August 26, 2008: 3:12 PM EDT NEW YORK (CNNMoney.com) -- More banks are in trouble than just three months ago according to the FDIC.
In its quarterly review of the nation's banking industry, 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 of this year.
The number of troubled institutions has moved steadily higher 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.
Banks included on the problem list are considered the most likely institutions to fail, although few institutions actually reach that point - just 13% of banks on the FDIC's problem list have failed on average.
The FDIC, one of the regulators of the nation's banking system, doesn't reveal the names of the banks on the list, but it does give the total assets of these institutions.
That number was $72 billion during the quarter, up sharply from $26.3 billion the previous quarter. The lion's share of that figure included the Pasadena, Calif.-based mortgage lender IndyMac, which boasted assets of $32 billion before it collapsed in mid-July.
Including IndyMac, nine banks have failed so far this year.
The most recent failure came last Friday with the Topeka, Kansas-based Columbian Bank and Trust. As is typically the case, the FDIC orchestrated the sale of the company's branches and deposits to another institution, in this case selling them to the Chilicothe, Mo.-based Citizens Bank & Trust.
In the event of a failure, the FDIC fully insures individual accounts up to $100,000 per deposit and $250,000 for most retirement accounts.
First Published: August 26, 2008: 3:08 PM EDT
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Fed auctions another $75B to ease credit stresses By JEANNINE AVERSA 08.26.08, 11:43 AM ET
WASHINGTON -
The Federal Reserve has auctioned another $75 billion in loans to help squeezed banks overcome their credit problems.
The central bank on Tuesday released the results of its most recent auction. It's part of an ongoing program started in December that seeks to ease financial turmoil and credit stresses. Those problems - along with the housing slump - have badly bruised the economy.
In the latest auction, commercial banks paid an interest rate of 2.38 percent for the 28-day loans. There were 66 bidders. The Fed received bids for $84.17 billion worth of the loans. The auction was conducted on Monday with the results made public on Tuesday.
The Fed earlier this month offered the loans for an extended period of 84 days, rather than the customary 28-day period.
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Didnt those elite rich families do something similar to this back in like 1910 to make the fed? This banking cartel system is so jacked up. Why cant we get it fixed?
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