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Problem bank ratio at 23-year high
CNN Fortune ^ | 2/23/2011 | Colin Barr

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 ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: banks; economy; solvency

1 posted on 02/23/2011 8:40:26 PM PST by FromLori
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To: FromLori
Problem bank list hits new high
2 posted on 02/23/2011 8:42:21 PM PST by FromLori (FromLori">)
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To: FromLori

Holy smoke! quick, everybody run to the bank and pull your money out just to be safe!


3 posted on 02/23/2011 8:45:31 PM PST by RC one (Change we can believe in! Yes we can! FUBO!)
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To: FromLori
What could possibly go wrong?


4 posted on 02/23/2011 8:46:06 PM PST by optiguy (Government does not solve problems; it subsidizes them.----- Ronald Reagan)
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To: FromLori
Hoenig: Break Up The Banks. Now.
5 posted on 02/23/2011 8:46:58 PM PST by FromLori (FromLori">)
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To: FromLori

1 bank in 9 is in danger of collapse.
Well then the obama regime should just take over the banks.

oh wait.


6 posted on 02/23/2011 8:49:06 PM PST by Texas resident (Hunkered Down)
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To: FromLori

Extremely disconcerting.


7 posted on 02/23/2011 8:59:47 PM PST by americanophile ("The Constitution is the guide which I will never abandon." - George Washington)
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To: FromLori

The solution is to steal from the poor and give to the rich. It’s so easy.


8 posted on 02/23/2011 9:13:10 PM PST by Tempest (I put money ahead of people)
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To: RC one
"Holy smoke! quick, everybody run to the bank and pull your money out just to be safe!"

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.

9 posted on 02/23/2011 9:19:18 PM PST by TopQuark
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To: Tempest
Federal Reserve ultimate protector of the banking class – Fed Reserve sends a thank you to American middle class and world for bailing out the banks with a gift of inflation. MIT chart tracking millions of items shows much higher inflation than CPI.
10 posted on 02/23/2011 9:36:17 PM PST by FromLori (FromLori">)
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To: optiguy

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.


11 posted on 02/23/2011 10:03:37 PM PST by Gen-X-Dad
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To: TopQuark

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.


12 posted on 02/24/2011 6:27:16 AM PST by darth
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To: darth
No disagreement here, my friend:

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.

13 posted on 02/24/2011 6:44:29 AM PST by TopQuark
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To: Tempest

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 :)


14 posted on 02/24/2011 7:10:18 AM PST by reed13
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