U.S. bank and thrift earnings dropped to the lowest level since 1991 in the fourth quarter, hurt by trading losses and increased reserves for bad loans, the Federal Deposit Insurance Corp. said.
Profit for FDIC-insured institutions was $5.82 billion, an 83 percent decline from the $35.2billion reported in the fourth quarter of 2006, the regulator said in its quarterly report on the banking industry.
"Weakness in the housing sector and the credit squeeze in financial markets made it a very challenging time," FDIC Chairman Sheila C. Bair said. "We can expect these problems to continue throughout 2008."
Six large lenders accounted for more than half of the year-to-year drop in quarterly profit, the FDIC said.
The FDIC managed three shutdowns last year, and 76 institutions are on its "troubled bank" list, Bair said.
The FDIC insures deposits at 8,534institutionswith $13 trillion in assets.
U.S. bank and thrift earnings dropped to the lowest level since 1991 in the fourth quarter, hurt by trading losses and increased reserves for bad loans, the Federal Deposit Insurance Corp. said.
Profit for FDIC-insured institutions was $5.82 billion, an 83 percent decline from the $35.2billion reported in the fourth quarter of 2006, the regulator said in its quarterly report on the banking industry.
"Weakness in the housing sector and the credit squeeze in financial markets made it a very challenging time," FDIC Chairman Sheila C. Bair said. "We can expect these problems to continue throughout 2008."
Six large lenders accounted for more than half of the year-to-year drop in quarterly profit, the FDIC said.
The FDIC managed three shutdowns last year, and 76 institutions are on its "troubled bank" list, Bair said.
The FDIC insures deposits at 8,534institutionswith $13 trillion in assets.
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