FDIC: U.S. 'Problem' Banks Rise to 305

bloomberg.com:

May 27 (Bloomberg) -- U.S. "problem" banks climbed 21 percent to the highest total in 15 years in the first quarter, and provisions set aside for loan losses weighed on industry earnings, the Federal Deposit Insurance Corp. said.

Read the whole story: bloomberg.com

Comments

[themodernleader]

""EinChicago. My primary source is the independent TheStreet.com of financial ratings. My other source is the Weiss financial newsletter which has been consistently accurate in its ratings and predictions. Their timing is better than most. Thestreet.com has a track record of being far more prescient in its ratings than the FDIC. There are other sources that are used by insiders of the world's power elite.

[themodernleader]

My reliable sources consider over 1400 banks to be subject to insolvence as this terrible depression gains traction. Of the 19 biggest banks, all but four (4) are considered vulnerable to collapse with continued economic decline.
What is a democracy called when the people can not believe the numbers that are given them? I don't know. But it is not a democracy. When leaders lie to the people, the people emulate such repertoires and incessantly lie to one another and to their leaders. And the whole danmed system slides into anarchy, collapse and destruction.

[EinChicago]

"My reliable sources consider over 1400 banks to be subject to insolvence as this terrible depression gains traction"

Bwa ha hah hah.
"My reliable sources...which are so triple secret double probation on the quiet that nobody else has them...."


Dude, the voices in your head do not count as reliable sources.

[Kat1278]

We need a protest movement, this is a financial fraud:

http://www.kpfa.org/archive/id/49073

[MIKEBC]

More hard times in the Bush / GOP depression, after 8 yrs. of free market, tax cuts for the rich economics america is now an economic basket case.

[SangZe]

Since the FDIC is keeping its list a secret, I guess it's time to bail out of my bank, just in case. We're obviously in a depression and the FDIC is obviously hiding something.

[Rule Of Law]

This is the part where the big banks, fueled by the largess of the public treasury, use their immense power to drive their competitors into the abyss--what used to be known as illegal monopoly or trust activities--to buy them up and increase their already powerful grip on the economy and our government. The problem with too big to fail, is that we didn't let them. Now it is the little banks that do most of the real work in this country for real people--Not Wall Street insiders--who will be consumed or eliminated.

Great plan. Well conceived, well implemented. Remember when Teddy Roosevelt would have done something about this?

[000Jade000]

A good article that helps to explain the rise of problem banks:

How the bailout s crews smaller banks:

http://www.ritholtz.com/blog/2009/05/how-the-bailouts-screw-smaller-banks/

[sonofsamphm1c]

One of the great ways to make this situation worse would be to stop Timothy Geithner from recycling Tarp funds from the 19 largest to smaller banks that can be salvaged.

That would be a most excellently stupid idea.

[tomasedison]

They've been selling crappy mortgage-backed paper and CDO's throughout the entire world. They're about 2 steps above Bernie Madoff.

[EinChicago]

This is the cycle. We saw it with oil and gas in the 90s/2000s. The market dips so the big guys start building huge cash reserves "in case things get worse". In doing so, the cash which is being hoarded in those "rainy day reserves" is choked off from smaller players who lose 90% of their value. Things inevitably get better and not worse, so the big guys don't need those rainy day funds so they start gobbling up those smaller players for pennies on the dollar. Folks like Krugman stand there scracthing their head realizing that they were played like a fiune instrument. Krugman's constant "zombie banks" bleating played right into the hands of those large players because it gave them the perfect cover to choke off the smaller guys and hoard cash.

[Social Construct]

If I understand the comment correctly, this is sort of a Walmart-ization of the banking industry shaping up, right? Fewer local financial institutions servicing needs in communities that they have genuine ties to; a more "human face" to corporate interest if you will that sees business relationships as something more than balance sheets and tools for investment. What a sad future, even if these large institutions recover and do well.

[KillTheMessenger]

There is nothing wrong with having cash reserves. Of course, only the people who have them can appreciate how well one sleeps at night knowing that one has them.

And it really does not matter how big you are. Everybody can build a cash reserve. All it takes is NOT shopping. That goes for little people just as it goes for mega-corporations.

:-)

[EinChicago]

Ummm. I never said there was anything wrong with having them; you're projecting your own insecurities there. Rather, I simply pointed out that is how the cycle always goes: Step one--economy dips, big guys build cash reserve in case of emergency; step two, emergency passes, so big guys are sitting on a masisve war chest to fuel a spending spree.

We've finished step one and are about to start step 2 over the next quarter.

[BabblingBrooks]

What's Kathy Baker's picture doing in a banking article?

[grateful4thedead]

the number that are technically insolvent is likely way greater than 305.

by the way, the FDIC's DIF (deposit ins. fund) is just about out of money i think. hey, at least they have a new 100 billion line of credit with the treasury.

it isn't going to get better until we take our medicine kids.

[RandVictims]

We "kids" have been taking our "medicine" for 20 years. It's time for the greedy, thieving Capitalists at the top to take some castor-oil - orally or otherwise.

Don't confuse "concentrated wealth" with money disappearing into mid-air, only fools believe the money is "gone". It's common knowledge it's been concentrated to the few who are the least useful (Capitalism, - by design)

This Reagan Capitalism was a vehicle to steal money from the poor and give it to the rich. I, for one, say "Let's get it back" - no matter what it takes.

[grateful4thedead]

Reagan Capitalism and the US Constitution are pretty much the same thing you know....

I might add that the founding fathers were pretty much greedy capitalists and they certainly were the "concentrated wealth" of this country at the time.

there is no denying this, pretty much basic american history.

I would suggest a nice communist country for you to reside within where taking money, "no matter what it takes", from the wealthy to give to the poor, but, alas, one hasn't been discovered yet.