RE and economic charts: Problem bank list hits new high + Problem bank ratio at 23-year high = Unofficial Problem Bank List Feb 25, 2011

Saturday, February 26, 2011

Problem bank list hits new high + Problem bank ratio at 23-year high = Unofficial Problem Bank List Feb 25, 2011

[mEDITate-OR:
assume that the bank crisis is over...
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Sadly, tis not close to being true.
This week we got two articles by Colin Barr in Fortune, that point out to U.S. that while the number of banks still in existence, the number "in trouble" is still increasing and the size of the problem is getting worse, not better.
This week Bill@CR provided U.S. with the latest, and first of this year, "Unofficial List of Problem Banks"
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The simple blunt truth is that most of the non-performing commercial RE loans on the books of small banks have NOT be reduced in value to current market. Delay and Deny.
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This week the Big Bad Banks are, finally, telling U.S. that their credit card debts are much larger than they have admitted.
And, the same "Servicer" banks notified the SEC that they might owe U.S. a ton of money for their origination, servicing and non-modification criminal acts.
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Ugly, and about to get much Uglier.
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CR Note:
The FDIC released the Q4 Quarterly Banking Profile this week.
The FDIC reported 884 official "problem" institutions at the end of 2010 (the highest since 1992) with $390 billion in assets.
There are a total 6,529 commercial banks and 1,128 savings institutions, so about 11.5% are on the "problem" list. Assets of all institutions are $13.1 trillion, so problem institutions have just under 3% of total assets.
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