by Bill McBride on 8/26/2008 03:42:00 PM
Tuesday, August 26, 2008
UPDATE: FDIC Press Release: Insured Bank and Thrift Earnings Fell to $5.0 Billion in the Second Quarter
From Bloomberg: FDIC Says Banks on `Problem List' Rose 30% in Second Quarter
The U.S. Federal Deposit Insurance Corp. said its ``problem list'' of banks increased [to] 117 ``problem'' banks as of June 30, up from 90 in the first quarter and the highest since mid 2003 ... FDIC-insured lenders reported net income of $4.96 billion, down from $36.8 billion in the same quarter a year ago.Also CNBC reported that the FDIC insurance fund ratio fell to 1.01%, below the 1.15% required by law. So the FDIC will probably have to raise rates for insurance.
``Quite frankly, the results were pretty dismal, and we don't see a return to the high earnings levels of previous years any time soon,'' FDIC Chairman Sheila Bair said at a news conference.
Lenders on the FDIC's ``problem list'' had assets of $78 billion at the end of the second quarter, an increase from the $26.3 billion at the end of the first quarter, the agency said.
Posted by Bill McBride on 8/26/2008 03:42:00 PM