FDIC: Number of Troubled Banks Rises to 552Submitted by Michael Nystrom on Tue, 11/24/2009 - 11:13
WASHINGTON (MarketWatch) - The number of distressed banks in the U.S. rose to the highest level in sixteen years in the third quarter, and the insurance fund used to protect bank depositors swung to a negative balance, according to a report released by the Federal Deposit Insurance Corp. Tuesday.
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, the FDIC said in its third-quarter report. This is the largest number of banks on its "problem list" since the end of 1993.
"Today's report shows that, while bank and thrift earnings have improved, the effects of the recession continue to be reflected in their financial performance," said FDIC Chairwoman Sheila Bair.
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