Posted on 02/23/2011 8:40:23 PM PST by FromLori
Fewer banks, more problems.
That's one take on the state of the banking industry, via the latest review issued by the Federal Deposit Insurance Corp.
The number of banks fell for the 25th straight year in 2010, FDIC data show. The agency's deposit insurance fund now covers 7,657 banks and thrifts. That's down 25% from 1999 levels and 58% below the 1985 peak.
At the same time, the number of banks at risk of failure continues to climb. The FDIC says 884 institutions rate dishonorable mention (anonymously, of course) on its problem list. That number has risen for 17 straight quarters to its highest level since 1992, at the tail end of the savings and loan crisis.
And if anything that measure understates the severity of this crisis, which comes after the biggest financial meltdown since the Great Depression.
The number of FDIC-backed banks judged at risk of failure is 11.5% -- which is to say 1 bank in 9 is in danger of collapse.
(Excerpt) Read more at finance.fortune.cnn.com ...
Holy smoke! quick, everybody run to the bank and pull your money out just to be safe!
1 bank in 9 is in danger of collapse.
Well then the obama regime should just take over the banks.
oh wait.
Extremely disconcerting.
The solution is to steal from the poor and give to the rich. It’s so easy.
And that's exactly what fromLauri wants you to do: there is no negative news about the banking industry and no negative drivel about the Fed or Wall Street that she cannot pass by. If it were up to her, we'd all be like Mussolini's Italy.
Your pictures are worth a thousand words. Exponential growth in debt = KABOOM when they have to double down again to keep the corrupt financial sector above water. No current financial schemes will stop these exponential curves unless they slam on the brakes and everyone takes a haircut.
Bank consolidation is just another sign of a broken economic engine that gives incentives for doing the wrong thing and rewards bad behavior. The bank consolidation has basically happened since Glass-Steagall was done away with by the FED/SEC/Treasury/Clinton team in the late 90’s. TBTF is what led to those curves, combined with the politicians refusing to make the tough decisions on stopping this nonsense.
I beg to differ with my esteemed fellow Freeper.
A healthy skepticism of Wall Street and the big banks is in order.
The articles posted on FR make us better educated than the sheeple who watch the State Controlled Media.
There have been runs on the banks in other countries, e.g., S. Korea. It is only prudent to be prepared for financial disaster in America. I hope my Freeper friends have considered the possibility that we could have a run on the banks or a “bank holiday” a la FDR.
A healthy skepticism of Wall Street and the big banks is in order.
I completely agree: healthy skepticism is always helpful and necessary. But when have you seen it last? Most of what I see is just vitriol and defamation without a shred of evidence. Skepticism should lead to inquiry, not the verbatim repetition of socialist talking points.
This reminds me that the story of Robin Hood has been seriously soiled. The phrase one often hears is “take from the rich and give to the poor”; however, the truth was that the government were the ones stealing from the poor through atrocious taxation, supported by the thuggery of the Sherrif of Nottingham. Robin was just taking it back from the tax collectors and giving it back to it’s rightful owners. Too bad the IRS doesn’t physically take taxes anymore....that might be fun :)
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