More than 700 banks, or nearly one out of every 11, are at risk of going under, according to a government report published Tuesday.
The Federal Deposit Insurance Corp. said that the number of banks on its so-called "problem list" climbed to 702, its highest level since June 1993.
The number of banks under scrutiny by regulators has moved steadily higher since the recession began. Just 76 financial institutions were on the list in the fourth quarter of 2007.
Banks that end up on the problem list are considered the most likely to fail because of difficulties with their finances, operations or management.
Still, few of the lenders that are on the list actually reach the point of failure. In fact, just 13% of banks on the list have been seized and shuttered by regulators.
The names of the banks on the list are never made available to the general public by regulators out of fear that depositors at those institutions may prompt a so-called "run on the bank."
Comment: Interesting graphic from the WSJ: Tracking Bank Failures. This morning at breakfast I was reading yesterday's WSJ (paper edition). An article stated that Wells Fargo and JP Morgan Chase are very strong banks. Can't find the link but found the article of interest.