FDIC Says 829 U.S. Banks at Risk

The U.S. Federal Deposit Insurance Corp. said 829 of the county’s 7,800 banks were at risk of failure at the end of June, up from 775 at the end of the first three months of this year.

829 U.S banks are listed as at risk of failure by U.S Federal Deposit Insurance Corp. ending June, accounting for more than one-tenth of the total 7,800 banks.

The FDIC said the figure by the end of March this year was 775.

As much as 118 banks have collapsed so far this year, compared with 140 banks taken over by regulators last year.

Standard &Poor’s said in August the recovery of banking sector was weakened by the economic downturn, troublesome real-estate market and uncertainties in regulation, although it did walked out from the darkest time.

U.S. banks showed some nascent signs of revival in the second quarter supported by the federal government’s series of measures, Wall Street Journal reported, “For the first time since 2006 the number of loans at least three months past due actually fell, declining nearly 5 percent.”

The U.S. banking sector realized a profit of 21.6 billion U.S. dollars in the second fiscal quarter, the highest since the global financial crisis. That compares a loss of 4.4 billion U.S. dollars during the same period of last year. Nearly two-thirds of U.S. banks reported better-than-2009 second-quarter results this year, but there are still 20 percent of the banks saw net losses, FDIC said.