The number of problem banks and thrifts nationwide rose sharply to 416 in the second quarter from 305 in the prior quarter, as the industry reported a $3.7 billion loss, the Federal Deposit Insurance Corp. said Thursday.

The FDIC said the industry swung back to a loss in the second quarter after reporting a $7.6 billion profit in the first quarter, primarily due to costs associated with rising levels of bad loans and falling asset values.

The agency reported its insurance fund used to safeguard bank deposits dipped 20 percent in the second quarter to $10.4 billion. The decrease in the fund was chiefly caused by an $11.6 billion increase in the money the FDIC set aside for anticipated bank failures.
(Reuters)

National Problem Bank List Hits 416, Insurance Fund Dips

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