Friday, September 18, 2009
"The banking industry continues to deteriorate, with federal regulators adding 111 lenders to their list of endangered banks in the latest quarter, even as the economy is stabilizing. Data released Thursday painted a gloomy picture of the state of banking. ... The [FDIC] said it had 416 banks on its 'problem list' at the end of June, equivalent to about 5% of the nation's banks, up from 305 at the end of March and 117 at the end of June 2008. Problem banks had a combined $299.8 billion in assets at the end of June, compared with $78.3 billion a year ago", Damian Paletta and David Enrich at the WSJ, 28 August 2009, link: http://online.wsj.com/article/SB125137695691263385.html.
Big deal, these are small banks, averaging $721 million each in assets. Conspicuosly no large banks are on the list. Why?