problem banks

According to Thursday report released by the Federal Deposit Insurance Corp problem banks in the United States increased more than 1/3 to 416 in the second quarter of 2009. Meantime, the regulators claim that there are signs of stabilization in the industry.

The report showed that the industry dropped back to a $3.7 billion loss in the second quarter, after reporting a $7.6 billion profit in the first quarter, primarily due to costs associated with rising levels of bad loans and falling asset values.