Gee, if you took it at face value, the FDIC's report, which says that problem banks increased by 46%, reaching a level not seen since the mid-1990s, says things are not as bad as in the savings and loan crisis. But of course, we are seeing this deterioration despite the Fed and Treasury throwing money at banks. Oh, just large banks.The problem thus far hasn't been in the number of problem banks, but in the concentration of their assets. While the number of banks in trouble were still "relatively" small (but growing), the relative size of failed or assisted banks in terms of assets is staggering. In fact, the amount was already greater than anything seen during the S&L crisis.
Unfortunately, as Yves states:
Things are sure to get worse in 2009.Source: FDIC