Bad loans cut banks' earnings

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Published: August 27, 2008

WASHINGTON — Federal regulators say U.S. banking industry profits plunged by 86 percent in the second quarter.

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Federal Deposit Insurance Corp. data show federally insured banks and savings institutions earned $5 billion in the April-June period, down from $36.8 billion a year earlier.

The roughly 8,500 banks and thrifts also set aside a record $50.2 billion to cover losses from soured mortgages and other loans in the second quarter.

The FDIC says 117 banks and thrifts were considered to be in trouble in the second quarter, up from 90 in the prior quarter and the biggest tally since mid-2003.

The Associated Press


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Related Topics: Business, Company Activities and Information, Earnings and Losses, Corporate Reporting, Earnings and Loss Announcements


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