Industry NewsMortgage

Banking industry back in the red

416 banks on FDIC 'problem list'
Published on Aug 27, 2009

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by CareyBot

More than one in four banks insured by the Federal Deposit Insurance Corp. lost money during the second quarter, and the number of institutions on the government insurer's "problem list" grew to 416 -- the largest number in 15 years.

A total of 81 insured banks and institutions have already failed this year, and the FDIC's Deposit Insurance Fund has dropped below the level mandated by congress. That could force the FDIC to raise fees banks pay for insurance coverage, or borrow money from the Treasury.

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