FDIC: Bank Failures Will Continue

The FDIC expects bank failures to continue as the financial crisis continues.

Yesterday they released their Quarterly Banking Profile and announced that the "problem bank list" is at 305 banks - the highest level since 1994. The problem bank list is not as useful as you might think because some banks fail without making it on the list, and many of the banks listed will not fail. Nevertheless, it's a useful barometer of bank troubles.

The problem bank list is not available to the public.

As always, stay below FDIC insurance limits and keep your eyes out for news regarding your bank. In most cases, bank failures are a non-event if you're covered by the FDIC.

Earlier this month, FDIC insurance of $250,000 per depositor was extended until December 31, 2013.

Further reading:

• Number of US banks at risk to rise again
• FDIC Insurance Basics