ScreamingEagle
Gold Member
- Jul 5, 2004
- 13,399
- 1,706
- 245
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
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
