775 Problem Banks

Why are they a problem? Bad loans in the commercial real-estate market.

From the article:

Poor loan performance in other sectors also continued to hurt banks, with the total number of loans at least three months past due climbing for the 16th consecutive quarter, FDIC officials said in a briefing on Thursday.

That doesn't sound like much of a recovery.

"The banking system still has many problems to work through, and we cannot ignore the possibility of more financial market volatility," FDIC Chairman Sheila Bair said.

I think I'll nominate that for "The Understatement of the Year" award.

We aren't out of it yet.