Bank Failures Send FDIC Into the Red

There are no green shoots at the FDIC, only red ink. And it's going to get worse before it gets better.

From the New York Times:

So far in 2009, the FDIC has seized and sold 124 problem banks. Despite booming trading profits posted by some of the larger banks, the bad loan portfolios of zombie banks weigh like a nightmare upon the living.

CNN Money reports that the FDIC has hiked up its list of "problem banks" from 416 to 562 just in the last quarter.

The Wall Street Journal reports that FDIC head Sheila Bair stated

"We do obviously have a lot more banks that will close this year and next," Bair said, adding the failures "will peak next year and then subside."