FDIC Says, "Banks Showing Signs Of Stress."

From Greg M

Lions and friends…

Second-quarter earnings at U.S. banks amounted to $70.8 billion, the FDIC said. The tally marks an 11.3% drop from the prior quarter. This combined with deposit withdrawals, increasing loan defaults, and overall falling demand for loans, is putting stress on the banking sector as a whole.

Higher interest rates have also hit banks in other ways, as well. Unrealized losses on securities are up 8.3% from the prior quarter to $558.4 billion, the FDIC said.

“These risks, combined with concerns about commercial real estate fundamentals, especially in office markets, as well as pressure on funding levels and net interest margins, will be matters of continued supervisory attention by the FDIC.”