Nearly 10% of U.S. banks could fail, says FDIC

Discussion in 'Economy' started by ScreamingEagle, Feb 23, 2010.

  1. ScreamingEagle
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    ScreamingEagle Gold Member

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    No less than 9% of the nation's banks are in trouble and may fail, according to Federal Deposit Insurance Corp.

    The FDIC doesn't disclose which banks are most at risk, but based on data from it and other regulators, at least six are in New York City or its suburbs.

    The deluge of what the FDIC kindly calls “problem” banks is threatening to overwhelm the agency's resources and force it to allow sick institutions to fester, potentially delaying an economic recovery.

    The FDIC reported Tuesday that 702 banks that collectively hold more than $400 billion in assets are problem institutions as of Dec. 31. That represents a 27% increase in just three months.

    Since the beginning of last year, the government has seized 160 banks. As a result, its insurance fund has run up a deficit of nearly $21 billion as of Dec. 31, or more than double the previous quarter.

    The FDIC uses the insurance fund to ensure depositors don't suffer losses on their first $250,000 when regulators seize an ailing bank. The agency last year began requiring healthier banks to contribute more to replenish the insurance fund, but the costs of mopping up bank failures continues to weigh on it. The FDIC could call on taxpayers for a line of credit of up to $500 billion.

    Nearly 10% of U.S. banks could fail, says FDIC - Crain's New York Business
     
  2. bugs
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    bugs Senior Member

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    i Heard it Was More Than 10% ONLY 10 Percent Would Be A GOOD Thing IMHO!!!:redface:
     
  3. Skull Pilot
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    Skull Pilot Platinum Member

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    Over 90% of US banks are not in danger of failing
     
  4. william the wie
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    william the wie Gold Member

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    Given available or more often the lack of available data on what is or isn't on the books how do you conclude that? Don't get me wrong if the shell game involving holding companies has ended that is great but I didn't get that word.
     
  5. blu
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    blu Senior Member

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    the idea of "the bank" is already in the works and will be a reality soon.
     
  6. Toro
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    Toro Diamond Member

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    If its only 10% - 400 banks - that'll be pretty good. 1600 banks failed during the S&L crisis.
     
  7. TheSuaveOne
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    TheSuaveOne Man without a party

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    Let's hope they fail soon. No help from the government.

    -TSO
     
  8. hvactec
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    hvactec VIP Member

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    20 bank failures so fare for 2010 FDIC: Failed Bank List
    same time period last year 2009 there were 16, starting to speed up a little.
    wait until the commercial properties start over the next few months then we will see banks all over crashing down to earth.
     
    Last edited: Feb 25, 2010
  9. Toro
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    Toro Diamond Member

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    Oops! I'm an idiot. That's 800 banks that may fail! There are 8000 banks in America.
     

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