FDIC 2008 Third Quarter Report

On November 25, the FDIC released their Quarterly Banking Profile for the Third Quarter of 2008.

• Banks reported net income of $1.7 billion for the third quarter of 2008. This represents a decline of 94% from the third quarter of 2007.
• Banks reported $7.6 billion of losses on sales of securities for the quarter, compared to a gain of $77 million for last year’s third quarter.
• Nine FDIC insured institutions failed during the quarter. This is the most since 1993.
• The FDIC’s Problem Bank List grew to 171 institutions from 117 the prior quarter. This is the largest number since 1995.
• Total assets of problem institutions was $115.6 billion.

“We’ve had profound problems in our financial markets that are taking a rising toll on the real economy. Today’s report reflects these challenges,” said FDIC Chairman Sheila C. Bair.