The Federal Deposit Insurance Corp. (FDIC) said Thursday that more lenders ran into financial trouble during the second quarter as the recession continued to saddle banks with soured loans. 

The number of troubled banks rose to 416 at the end of June from 305 at the end of March.  This is the largest number of banks on its “problem list” since June 30, 1994, when 434 banks were on the list.  This brings the total assets at troubled banks to $229.8 million billion, that’s right with a “B”, the highest level since Dec. 31, 1993 according to the FDIC.

Keep in mind that the total reserves of the Deposit Insurance Fund  stood at $42 billion, with the contingent loss reserve falling to $10.4 billion from $13 billion Read the rest of this entry »