FDIC Adds 54 Banks To “Problem List”

As of this Tuesday, we have a grand total of 171 banks that are considered to be in trouble, that is almost a 50% increase.  For anyone that is curious how their bank in performing; Bauer Financial has been reporting on and analyzing the performance of U.S. banks and credit unions since 1983.  Here is the link.

In the second quarter, 117 FDIC-insured institutions were on the list. Now, at 171, the number of institutions on the FDIC’s “problem list” is at its highest level since late 1995.

“We’ve had profound problems in our financial markets that are taking a rising toll on the real economy,” said FDIC Chairman Sheila Bair in a statement, adding that Tuesday’s report “reflects these challenges.”

Total assets held by troubled institutions climbed from $78.3 billion to $115.6 billion – a figure that suggests that the nation’s top 20 banks aren’t on the list, even though they are getting slammed, too, by the growing credit crisis. The FDIC does not reveal the institutions it deems troubled.

The average is about 13% of the Financial Institutions end up failing that make it to the FDIC list.  Another source for checking financial strength and stability of U.S. commercial banks, is Bankrate.com. Their system applies 22 tests to each institution to measure that institution’s; capital adequacy, asset quality, profitability, and liquidity.

Banks that don’t make the list can end up collapsing anyway – the two biggest bank failures over the past year, Washington Mutual and IndyMac Bancorp, had not been on the FDIC’s list of troubled banks.

Here’s hoping that the New Year and the new administration brings a decrease to this ever growing problem list.

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