Problem bank list climbs to 829 - Aug.

31, 2010 1/09/10 2:14 PM

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Problem bank list climbs to
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By Hibah Yousuf, staff reporter August 31, 2010: 1:42 PM ET

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NEW YORK (CNNMoney.com) -- The government's list of troubled banks
hit its highest level since 1993 during the second quarter, although the pace How to open a shop with very little cash
of growth continued to slow, according to a government report released In kiosks, trucks and other teeny spaces,
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The number of banks at risk of failing rose by 53 to 829, the Federal More
Deposit Insurance Corp. said in its quarterly survey of the nation's banking
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However, it's still nearly double the
0 185 416 banks that were on the FDIC's
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Problem bank list climbs to 829 - Aug. 31, 2010 1/09/10 2:14 PM

average, just 13% of banks on the

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More money in the kitty. The FDIC
reported a second consecutive Help Desk
increase in its deposit insurance Tips for buying your first home How to figure out th
Where the banks are failing
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Bank failures and foreclosures keep
mounting View Map deposits when a bank fails. The fund, should cost you each month.
which had been dwindling for two Play

years, grew by $5.5 billion, but it still

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operates in the red, with a deficit of
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current resources are more than
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bank index.
Markets
Meanwhile, banks and other
institutions insured by the FDIC
collectively earned approximately $21.6 billion during the quarter. That's the US Indexes Market M
highest in nearly three years and reversing last year's $4.4 billion loss.
Markets Last Ch

Two out of three banks reported higher profits compared to a year ago, as Dow 10,014.72
they set aside fewer funds to cover bad loans for the first time since 2006. Nasdaq 2,114.03
Banks reduced their quarterly loan-loss provisions to $40.3 billion, according
S&P 500 1,049.33
to the FDIC. That's down more than 40% from a year ago.
Treasurys 2.48

Although bank earnings are still low by historical standards and the number U.S. Dollar 1.27
of problem banks and bank failures remain high, Bair remained optimistic.
symbol
"As long as economic conditions remain supportive, most institutions should
maintain profitability and increase their capacity to lend." she said.

The latest reading on the health of the industry provided a modest boost to
bank stocks Tuesday. The KBW Bank Index (BKX) edged up 1.3% in late Sponsors
morning trading.

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Problem bank list climbs to 829 - Aug. 31, 2010 1/09/10 2:14 PM

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First Published: August 31, 2010: 10:19 AM ET

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