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Main Website >>Investment Management / Alternative Investment >>Blog >> Tag: special_assets
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Patrick Blount, President / CEO, BENEWOLF, LLC

FDIC Posts Q1 2010 Results - Yee Haw!
Monday, June 27 2011 | 02:27 PM
Patrick Blount
President / CEO, BENEWOLF, LLC

According to today's FDIC Press Release the number of institutions on the FDIC "Problem List" rose to 775 in Q1 up from 700 at the end of 2009.The total assets of these "problem" institutions rose to$431B up from $403B at the end of 2009. Only 41 institutions failed in Q1 (but we have added an addition 33 for Q2 to date).Sounding like a Jon Stewart quote Shelia Bair noted that "the vast majority of "problem" institutions did not fail." To me this is a little like saying that "the earthquake in Haiti did not kill everyone, so things aren't as bad as you think."On a brighter note the release said that the Deposit Insurance Fund (DIF) "improved" from a "negative" -$20.9B to only a negative -$20.7B. Happy days are here again!Further they reported that the FDIC's Liquid Resources stood at $63B a decline from $66B at the end of 2009. So let's do the math : $63B Liquid Resources minus $431B problem institutions equal -$368B add the -$20.7B in the DIF deficit and you get a rosy negative -$388.7B or about half of the original TARP total for all banks, AIG, Auto Industry and Fannie & Freddie. (This number is just for the FDIC)More good news, they reported the number of non current loans rose from 5.38% to 5.45% the highest level in the 27 years that institutions have reported these numbers.Direct Quote for the PRess Release:Chairman Bair concluded by stating, "There will be more failures, to be sure. The banking system still has many problems to work through, and we cannot ignore the possibility of more financial market volatility. But the positive signs I've outlined today suggest that the trends continue to move in the right direction." Oh, in that case please re-read the numbers above and double check my math.So let me end on a truly positive note. The FDIC reported that the nations 7,932 reported a collective Q1 profit of $18B. Of course that includes income from such famed banking institutions as Goldman Sachs, JP Morgan, Citi and BofA who all posted perfect games in Q1 trading whereby they made money each day for 61 consecutive trading days totaling well in excess of the $18B reported by the FDIC. But I'm not an accountant only and interested reader with a calculator.
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