US Banking System Still In A Complete State Of Flux

I’m leading off this post with the above chart. In a nutshell, it tells the story of the US banking system. It’s failing. You can see that the FDIC “INSURANCE” which insures deposits, doesn’t really have all that much insurance behind it any more. It’s now insuring about 1/3 of the deposits. Of course, it’s understood that the government will print more money to support the fund when necessary, but it’s not a good situation.

The FDIC just completed a quarterly profile on the state of the banking industry as of 3/31/09. The FDIC published the report yesterday on their website. The news is not real good. This is backward looking data, but you can see by some of the graphics that I chose to present below, it appears that as of 3/31/09, the banking system was still in a complete state of flux.

Here’s the link to the full color graph book

Credit quality of loans is still deteriorating

The composition of most of the 1st quarter charge-offs are R/E and Credit Card

Quarterly charge-offs not keeping up with Non-Current Loans

Bankruptcy filings are on the increase along with credit card charge-offs.

Finally, banks are still not lending as of 3/31/09

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