The FDIC is going to be working overtime.
The agency increased the number of "troubled" banks on its list of firms it may have to shut down.
The open question is where the FDIC will get the extra billions it will need?
According to Bloomberg, "The FDIC identified 171 “problem” banks as of Sept. 30, up from 117 in the second quarter and the highest since December 1995, the regulator said today in its quarterly report."
NYU professor and economist Nouriel Roubini says that several hundred banks will fail before the current downturn is over.
Douglas A. McIntyre