I was recently called out on missing the details of the FDIC’s list of 117 ‘problem’ banks. In a post on the OTS’ agreement for regulatory supervision of Washington Mutual, I incorrectly stated that NCC was on that list and inferred that WaMu was as well. This is not the case. The total asset base of the banks on that list is only $78 billion combined.
Both NCC and WaMu have more assets alone than that entire list. So, this was clearly an error on my part and I freely admit it.
However, this does give me the opportunity to cite the blog “Bank Deals” which has enumerated which troubled banks in particular could not be on the FDIC’s watch list.
The FDIC won’t say which banks are in its problem list. However, based on the total assets of these institutions, we know which banks are NOT on the list. The total assets is $78 billion with $32 billion coming from IndyMac Bank which failed in July. That leaves $46 billion for the other problem banks. Below are banks that can’t be on the list since their assets are over $46 billion. However, it should be noted that IndyMac failed and it was not on the problem list at the end of the first quarter.
- Wachovia: $671 billion (FDIC source)
- WaMu: $307 billion (FDIC source)
- National City: $151 billion (FDIC source)
- KeyBank: $98 billion (FDIC source)
The following banks are under $46 billion in assets, however, with a total of 117 banks on the problem list, there are probably not too many banks with assets between $10 to $20 billion on the list.
Sorry for this factual error.
Problem banks: What you need to know – CNN Money