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.
Thursday, August 28, 2008
More Banks in Danger of Failure
CNN Money reports that the FDIC's list of troubled banks is still growing and expected to keep growing in the future.