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More than one in four U.S. banks are unprofitable, a number fueled by rising numbers of bad loans, the FDIC announced Thursday.
The percent of banks losing money has quadrupled since 2005. The U.S. added 111 banks to its "Problem List" for a total of 416, a 15-year high (the FDIC doesn't publicly identify those banks). And the rate of loans that are at least 90 days late or are so late they're no longer accruing interest is the highest recorded in U.S. history.
A look inside the FDIC's numbers also sheds light on how U.S. consumers are managing the recession. The health of banks is not just a Wall Street problem, or one for federal bank regulators in Washington, D.C.
It's not a pretty picture. The amount of loans banks are charging off is rising (when banks charge off a loan it means they don't expect the borrower to repay). There have been more charge-offs on multifamily home loans (apartment buildings) so far this year than all of 2008.
Bank Numbers Reveal Troubling Trend On Main Street
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