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Bank on this: 1 in 10 on FDIC 'problem list'

Editor’s Note: The following report is excerpted from Jerome Corsi’s Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and senior managing director of the Financial Services Group at Gilford Securities.

At least one out of every 10 banks in the United States is now on the FDIC “problem list,” at risk of bankruptcy, Jerome Corsi’s Red Alert reports.

At the same time, the Mortgage Bankers Association has reported that one in 10 American households with a mortgage face foreclosure this summer as Obama administration mortgage-modification programs have failed.

“Neither report gives confidence that any steps taken so far by the Obama administration are working to shore up banking or help homeowners facing foreclosure,” Corsi wrote.

The Federal Deposit Insurance Corporation reported that 829 of the nation’s approximately 7,800 banks are on its “problem list,” up from 775 banks on the list at the end of June.

By comparison, only 416 banks were on the FDIC problem list last year.

Through August, 118 banks have failed this year, a pace that exceeds last year when 140 banks were closed by regulators.

Loan balances across all major loan categories fell during the second quarter 2010, with total loan and lease balances falling by 1.3 percent. Total assets for the banking industry fell 1 percent, to $13.2 trillion in the second quarter.

“Bank lending is not likely to pick up until corporations begin hiring and consumer spending shows sustained confidence,” Corsi noted.

While the FDIC reported a second consecutive quarter of increase in its deposit insurance fund, with the fund growing by $5 billion as a result, the FDIC continues to operate in the red, with a deficit of $15.2 billion.

For more information about the Obama administration’s mortgage aid and mounting bank failures read Jerome Corsi’s Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, “The Obama Nation.

Red Alert’s author, who received a doctorate from Harvard in political science in 1972, is the author of the No. 1 New York Times best-sellers “The Obama Nation” and (with co-author John E. O’Neill) “Unfit for Command.” He is also the author of several other books, including “America for Sale,” “The Late Great U.S.A.” and “Why Israel Can’t Wait.” In addition to serving as a senior staff reporter for WorldNetDaily, Corsi is a senior managing director in the financial-services group at Gilford Securities.

Disclosure: Gilford Securities, founded in 1979, is a full-service boutique investment firm headquartered in New York City providing an array of financial services to institutional and retail clients, from investment banking and equity research to retirement planning and wealth-management services. The views, opinions, positions or strategies expressed by the author are his alone and do not necessarily reflect Gilford Securities Incorporated’s views, opinions, positions or strategies. Gilford Securities Incorporated makes no representations as to accuracy, completeness, currentness, suitability or validity of any information expressed herein and will not be liable for any errors, omissions or delays in this information or any losses, injuries or damages arising from its display or use.

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