This is for all you financial statistics junkies out there…
According to the FDIC’s quarterly banking profile, more than one in ten US banks (829 out of 7830) are currently in trouble, and the number appears is climbing, with the number of banks on their “problem list” increased by 7% during the 2nd quarter.
In terms of bank failures, 118 banks have already under in 2010, compared to 140 in all of 2009, and just a handful per year prior to the current economic crisis. In other words, be sure to pay attention to FDIC limits when managing your bank accounts.
The good news is that, for the first time since 2006, the number of loans that are 90 or more days past due declined, falling nearly 5%. The same can be said of loans charged off by banks, which showed a slight year-over-year decline for the first time since the 4th quarter of 2006.
Interestingly, the 2nd quarter of 2010 also marked the first time in 38 years that the FDIC didn’t add any new banks.
3 Responses to “Mixed Banking News From the FDIC”
A few years ago while the bubble was growing, banks were granting loans for much higher interest rates than today. Many of these loans were high risk for the bank. The banks that were doing it right and analyzing risk made out better than the ones that were doing everything they could think of to sell more loans.
The irresponsible lenders have lots of foreclosures and non-payers on their hands and not enough solid accounts to make up the losses. The banks that paid attention have some losses, but are currently collecting larger interest payments from the loans that are still locked into the old rates, and paying next to nothing in interest on the federal funds rate and deposits.
Banks aren’t inherently evil. Any bank that doesn’t put shareholder profits high on the list of objectives is not a healthy bank. It is good practice to maintain loyalty and trust, otherwise a bank will not get good customers, and good customers make better profits for the long haul.
Bank failures are going up and profits are rising. Isn’t that an interesting combination?
The stats tell it all, for years and years the banks, insurance companies, and some financial institutions have been taking advantage of the unknowing and unsuspecting public. It is time[long overdue]for that people learn about money and stop being blind to the real truth: THEY [BANKS,INSURANCE CO. ETC]ONLY CARE ABOUT THEMSELVES NOT US!