U.S. ‘Problem’ Banks Rise to 305, Highest Since 1994, FDIC Says

[marmar]

U.S. ‘Problem’ Banks Rise to 305, Highest Since 1994, FDIC Says
By Margaret Chadbourn and Alison Vekshin


May 27 (Bloomberg) -- U.S. “problem” banks climbed 21 percent to the highest total in 15 years in the first quarter, and provisions set aside for loan losses weighed on industry earnings, the Federal Deposit Insurance Corp. said.

The FDIC classified 305 banks with $220 billion in assets as “problem” lenders as of March 31, rising from 252 with $159 billion in assets in the fourth quarter, the agency said today without naming any institutions. The FDIC said its insurance fund slumped 25 percent in the period.

“The first-quarter results are telling us that the banking industry still faces tremendous challenges, and that going forward asset quality remains a major concern,” FDIC Chairman Sheila Bair said today in a statement.

Regulators have taken over 36 lenders this year, including BankUnited Financial Corp. in Florida on May 21 and Silverton Bank of Atlanta on May 1, which combined cost the FDIC’s deposit insurance fund $6.2 billion. Twenty-one banks collapsed in the first quarter compared with 25 that failed in 2008, as the pace of failures accelerated amid the worst financial crisis since the Great Depression. ..............(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a6PE4NB3ns5k&refer=home

[w4rma]

1. Let the ones that are "too big to fail" fail, damnit. (nt)