702 U.S. banks on FDIC trouble list at risk of default

The FDIC on Wednesday has indicated there are 702 banks on the FDIC trouble list which is in danger of defaulting. This is the highest level in 16 years.

Last year 140 banks failed in the US, with another 20 this year. The FDIC Chairwoman, Shella Bair says this pace is likely to quicken.

Commercial real estate loans have been the latest problem to hit US banks. On the 31st December 2009, almost $1.1 trillion in commercial loans and $211 billion in loans for apartments were held by U.S. banks. Collectively banks face $300 billion in losses on loans made for commercial property and development.

ยป Almost 10% of FDIC-insured banks “troubled” – Market Watch, 23rd February 2010.