FDIC: 171 banks on 'problem' list
The Business Journal of Milwaukee - by Adam Kress Phoenix Business Journal
The Federal Deposit Insurance Corp. reports that the number of “problem” banks rose sharply in the third quarter.
The report issued Tuesday shows the number of firms on the agency’s so-called problem list grew to 171 during the third quarter -- the highest number since 1995. There were 117 banks on the list in the second quarter.
Though the FDIC does not reveal the names of the banks on the list, it said combined assets of these institutions totaled $116 billion in the third quarter compared with $78.3 billion for the previous three months. This is the first time since 1994 that the assets of problem banks exceeded $100 billion.
Despite the troubling news, just 2 percent of FDIC-regulated banks are now on its watch list, compared with about 10 percent in the late 1980s and early 1990s during the savings and loan crisis.
The government identifies problem banks as institutions on the brink of failure, facing severe financing difficulties and management issues. But an average of just 13 percent of banks on the FDIC’s problem list have failed.
Three more banks failed on Nov. 21, PFF Bank and Trust in Pomona, Calif., Downey Savings and Loan in Newport Beach, Calif., and The Community Bank in Loganville, Ga. That brings the total to 22 this year, compared to three in 2007. Nine banks failed in the third-quarter alone, including savings and loan giant Washington Mutual, the largest bank failure in history.
The Phoenix Business Journal is a sister publication of The Business Journal Serving Greater Milwaukee.
Related Industry News |
Latest News |
Most Viewed Stories |
Most Emailed Stories |
