“The Calculated Risk Blog has listed another problem bank list and surprisingly, the number of failing banks has increased to 985 in the new list.

The collective worth of these problem banks stands close to $432 Billion. Some of the banks managed to stay out of the problem bank list, irrespective of the fact that they were a part of this list when the problem bank list was released last time.

However, the surprising and depressing fact for the economy is that even after two years of global recessionary jolts, the failing banks are increasing in number at a gradual speed. This is hinting towards an underlying problem related to the fund management and monetary flow in the country.

Sooner or later, these failing banks would be taken over by the FDIC or the Federal government or will be liquidated – but for the economy, it would not be the best thing to happen. It is high time that the Obama administration steps up and establishes a strong monitoring system in place to eradicate the bad practices followed by the banks.”