'Problem' banks at 15-year high in US
China Daily | Updated: 2009-05-29 07:50
WASHINGTON: US "problem" banks climbed 21 percent to the highest total in 15 years in the first quarter as provisions set aside for loan losses weighed on earnings, the Federal Deposit Insurance Corp said.
The FDIC classified 305 banks as "problem" and their total assets rose 38 percent to $220 billion, the highest since 1993, the agency said without identifying any lender. The FDIC said its insurance fund slumped 25 percent to the lowest level in 15 years.
"The banking industry still faces tremendous challenges," FDIC Chairman Sheila Bair said yesterday. "Asset quality remains a major concern."
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