829 Banks on the FDIC Problem List

Over the past few days, news has been spreading about the number of banks that are now on the FDIC's problem list.  The number has been increased to 829 at the end of June from 775 in the first 3 months of 2010 (the Wall Street Journal reports).  CNN points out that this is nearly double the number of banks on the FDIC's watch list from last years 416.  Banks that end up on this list are considered the most likely to fail.  For a complete list of failed banks click here.  For the geography of failed banks click here.  [ Read more ... ]

Chart courtesy of problemlist.com

Though the FDIC does not publish its problem list for fear of a run on the bank, calculatedriskblog.com posts and unofficial problem list, click here to see if your bank is on the list.

It makes you wonder, in times where large numbers of small banks are failing and no real lending is taking place, how are the big banks are experiencing soaring profits?  Where is that money coming from, if lending is not taking place?  Is it making big bets on shaky investment with cheap money due to a loose fiscal policy?  Will there be fallout from that where taxpayers will have to step in again?  Who is really benefiting from this loose money policy, most Americans are underwater and cannot refinance (few above water can refinance, but they are not the majority).  Another point to made the other day, with big banks starting to lend, they are finding nobody wants the debt, furthering the argument on who is really benefiting, if nobody wants the debt?  [ Read more... ]