One out of every 11 banks in the U.S. are at risk of collapse according to new government reports released on Tuesday. A “problem list” gathered by the Federal Deposit Insurance Corp. now includes 702 banks, up from 76 in the final quarter of 2007. All banks on the list teeter on the edge of going on under as a result of finance, management or operational deficiencies. The present number of institutions of this kind is the highest since June 1993.
While the length of the list is alarming, only a minority, 13 percent to be exact, of the banks included on the list have been overtaken by regulators. The names of those banks left undisclosed to the public to avoid the risk of costumer’s taking capital out of the institutions all at once and collapsing the bank.
Even those banks not featured on the list are encountering problems for the year with almost a third of all banks across the U.S. reporting losses in 2009 according to the FDIC.
FDIC Chairman Sheila Bair though, while concerned about the unsure state of banks is more impressed with the comeback they have made over the course of the year. Bair remains optimistic despite collecting only minor profits of $914 in the fourth-quarter.
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