FDIC Says List Of ‘Problem’ Banks Has Grown

Banking industry income overall falls, but still much higher than last year

WASHINGTON — The number of banks on the Federal Deposit Insurance Corp.'s confidential "problem" list grew over the summer even while the overall industry posted solid net income.

The FDIC says its list of troubled banks rose to 860 in the July-September quarter from 829 in the previous quarter.

At the sa

me time, the FDIC says banks earned $14.5 billion during the third quarter. That was a decrease from the previous quarter's result of $21.4 billion, but well above the $2 billion banks earned a year earlier.

The FDIC says banks set aside less money to cover future loan losses than at any time since the October-December quarter of 2007, before the financial crisis. Fewer borrowers were behind on payments for credit cards and construction loans.

GO HERE to read more.