No of troubled banks hits highest in 17 yrs at 775: US govt
In a reflection of how shaky is the American banking system, the number of troubled banks climbed to 775 in the first three months of 2010, the highest in nearly 17 years.world Updated: May 20, 2010 23:52 IST
In a reflection of how shaky is the American banking system, the number of troubled banks climbed to 775 in the first three months of 2010, the highest in nearly 17 years.
The count of such entities have increased from just 702 at the end of last year, despite the world's largest economy has been growing at a healthy pace in the last two quarters.
The Federal Deposit Insurance Corporation (FDIC), which insures deposits at over 8,000 banks, today said the number of institutions on its 'problem list' rose to 775, up from 702 at the end of 2009.
"In addition, the total assets of the problem institutions increased during the quarter from USD 403 billion to USD 431 billion. These levels are the highest since June 30, 1993, when the number and assets of problem institutions totalled 793 and USD 467 billion, respectively," FDIC said in a statement.
Moreover, the count of failed banks are rising by the day and over 50 entities have already folded up this year. In the 2010 first quarter, 41 entities went belly up.
"There will be more failures, to be sure. The banking system still has many problems to work through, and we cannot ignore the possibility of more financial market volatility," FDIC chairperson Sheila C Bair said.