With Bank Troubles Easing, F.D.I.C. Fund Almost Positive |
| New York Times - May 24, 2011 |
After three years of small financial firms falling like dominoes, bank troubles are easing — a situation that is expected to help push the government-administered insurance fund that protects depositors into positive territory next month.
Only four new lenders were added to the government’s list of so-called problem banks in the first quarter, bringing the total to 888 from 884, according to the Federal Deposit Insurance Corporation on Tuesday. That is the smallest increase since the financial crisis began and one of the clearest signs yet that the banking industry is returning to health. The F.D.I.C. fund protecting the nation’s savers, which has operated in the red for the last seven quarters, is now expected to be replenished by the end of June.
Although far from glowing, the F.D.I.C. offered a relatively upbeat assessment for the nation’s 7,574 lenders when it released its quarterly report card on Tuesday. Sheila C. Bair, the agency’s chairwoman who is planning to step down in July, said the industry shows “continuing signs of improvement.” Still, she underscored that banks have plenty of work ahead as they contend with an anemic economy, still-fragile housing market, and the possibility of interest rate shocks in the months ahead.
Read Full Article from New York Times
- Posted: 2011-05-24 10:12:48
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