FDIC: Number of troubled banks rises to 552

Discussion in 'Wall St. News' started by ASusilovic, Nov 24, 2009.

  1. WASHINGTON (MarketWatch) - The number of distressed banks in the U.S. rose to the highest level in sixteen years, according to a report released by the Federal Deposit Insurance Corp. Tuesday. The FDIC said that the number of troubled banks rose to 552 at the end of September from 416 at the end of June and 305 at the end of March. This is the largest number of banks on its "problem list" since the end of 1993. Banks insured by the FDIC swung to a total quarterly profit of $2.8 billion, more than three times the $879 million they earned during the same period last year and significantly better than their combined $4.3 billion net loss in the second quarter of 2009. The FDIC reported that its Deposit Insurance Fund swung to an $8.2 billion loss, which the agency hopes will be made up by advance payments of $45 billion in fees.