Problem and Failed Banks
May 6th, 2009
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A new phrase entered the vernactular following the unprecedented upheavels in the United States financial system. The so called Problem Bank List is a secret list of banks that have impaired capital positions that might lead to failure of the bank. This list is compiled by the Federal Deposit Insurance Corporation, who oversees and safeguards bank deposits within the United States.
In recent quarters, the problem bank list has swelled to excessive levels as banks face troubles of souring investments and underperforming loans. The last report provided by the FDIC indicated that there were 252 banks contained on the problem bank list. More than one out of ten banks who appear on this list eventually fail, based on historic measures.