FDIC Problem Banks List

Bank 'problem list': What it means

Failure of IndyMac puts a sharp focus on FDIC ratings of banks facing financial problems. Here are answers to some common questions.

 

The federal takeover of IndyMac Bank last week left many Americans wondering whether their bank was safe. It put a spotlight on a relatively obscure list published quarterly by the FDIC called the "problem list."

There were 90 banks on the problem list in the first quarter of 2008, up from 76 at the end of last year. The number has been increasing since the third quarter of 2006, when it hit a historic low of 47. Total assets at the problem institutions stand at $26.3 billion.

What is the problem list?
Problem banks have serious deficiencies in their finances, operations or management that threaten their continued viability. The Federal Deposit Insurance Corp. publishes the number of banks in this condition in its Quarterly Banking Profile report.

 

read the full article...