Three years after the height of the financial crisis, the issue of impaired assets on bank balance sheets remains a major risk to the health of the banking system. Regulators have allowed banks to avoid taking losses on impaired assets by not requiring mark to market accounting.  The extent of overvaluation on bank loans can be seen every time a bank fails and the FDIC has to routinely [...]

Who says the mortgage crisis is over?  Regulators revealed today that the nation’s banks and thrifts have an alarming delinquency rate of almost 20% on their $2.6 trillion mortgage portfolio. The Office of the Comptroller of the Currency and the Office of Thrift Supervision jointly released the 2011 first quarter Mortgage Performance Report.  The Report provides an in depth analysis [...]

Many More Banking Failures Likely The FDIC will not reveal what banks are on their Problem Bank List but MSNBC has come up with a list of 294 banks that have very high troubled asset ratios of 90% or higher.  It’s probably a good bet that many of the institutions on the MSNBC list are also on the FDIC Problem Bank List.  MSNBC describes their methodology for inclusion on [...]