Increasing Number of Banks on Unofficial Problem Bank List

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Written By H. Pike Oliver

The graph that appears below shows the increase since August 2009 in the number of banks on an unofficial problem bank list provided courtesy of Bill McBride's Calculated RISK blog.  McBride credits a blogger by the name of "surferdude808" for creating a proxy for the Federal Deposit Insurance Corporation (FDIC) which is only published quarterly.   CAMELS is an acronym for the  FDIC rating system that is based on --Capital adequacy, Asset quality, Management, Earnings, Liquidity and Sensitivity to market risk.  According to McBride, surferdude808 creates his list of potential problem banks based on publicly announced formal enforcement actions, and also media reports and company announcements that suggest an enforcement action is likely

This unofficial list of potential problem banks has grown by forty percent between August 2009 and November 2009.  This unofficial count is close, but slightly lower than the official FDIC list.  McBride thinks the difference may have to do with data timing issues.  In any event, the trend line is moving in the wrong direction.  As of October 20, 2009, the FDIC insured deposits mat 8,195 financial institutions.

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H. Pike Oliver

Born and raised in the San Francisco Bay Area, H. Pike Oliver has worked on real estate development strategies and master-planned communities since the early 1970s, including nearly eight years at the Irvine Company. He resided in the City of Irvine for five years in the 1980s and nine years in the 1990s.

As the founder and sole proprietor of URBANEXUS, Oliver works on advancing equitable and sustainable real estate development and natural lands management. He is also an affiliate instructor at the Runstad Department of Real Estate at the University of Washington.

Early in his career, Oliver worked for public agencies, including the California Governor’s Office of Planning and Research where he was a principal contributor to An Urban Strategy for California. Prior to relocating to Seattle in 2013, Oliver taught real estate development at Cornell University and directed the undergraduate program in urban and regional studies. He is a member of the Urban Land Institute, the American Planning Association and a founder and emeritus member of the California Planning Roundtable.

Oliver is a graduate of the urban studies and planning program at San Francisco State University and earned a master’s degree in urban planning at UCLA.

https://urbanexus.com
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