F.D.I.C. Says Banking Industry Lost $3.7 Billion

[steven johnson]

Source: NY Times

Even as financial stocks have rallied nearly 60 percent since the end of March, the Federal Deposit Insurance Corporation issued another grim report card Thursday on the health of the nation's banks.
The agency reported that the banking industry lost a $3.7 billion in the second quarter amid a surge in bad loans made to home builders, commercial real estate developers, and small and midsize businesses.
Its deposit insurance fund dropped 20 percent, to $10.4 billion, in the second quarter, its lowest level in nearly 16 years.
And the number of "problem banks," the F.D.I.C. said, increased to 416 from 305 in the first quarter and is expected to remain high.
Indeed, federal officials warned that a rebound in the banking sector could lag an economic recovery by a year or more. "In many important respects, financial markets are returning to normal," the F.D.I.C. chairwoman, Sheila C. Bair, said. "Cleaning up balance sheets is a painful process that does take time, but it is absolutely necessary to the industry's sustained profitability."


Read more: http://www.fdic.gov/news/news/press/2009/pr09153.htm

[sofa king]

1. ...But they generated $38 billion in overdraft fees.

Many of which cannot or will not be paid by the very poorest sector of Americans who use banks. Those false credits are no doubt already being rolled into more bundled funds which will eventually be found to be bad, and the banks will find a way to make money off of that, too.

[fascisthunter]

2. **poof** just like that

now who has the money?