FDIC posted a collective loss of $26.2 billion

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http://www.marketwatch.com/news/story/fdic-paints-bleak-banking-picture/story.aspx?guid=%7BAD2B796C-DC21-45AA-97D0-524CEF8FF55A%7D&dist=msr_6

NEW YORK (MarketWatch) -- Banks insured by the FDIC posted a collective loss of $26.2 billion in the fourth quarter of 2008, the agency said Thursday, as the percentage of charged off loans tied a quarterly record of 1.91%.
The grim results compared to a $575 million profit during the fourth quarter of 2007.
"Rising loan-loss provisions, losses from trading activities and goodwill write-downs all contributed to the quarterly net loss as banks continue to repair their balance sheets in order to return to profitability in future periods," the FDIC said in a press release.

Sheila Bair, the agency's chief, said in a press conference that there will be no quick fix to the banking crisis and that troubled loans will keep rising.
She said the number of "problem" banks identified by the FDIC rose to 252 in the fourth quarter, compared to 171 banks at the end of the previous quarter.
The FDIC said more than two-thirds of all insured banks earned money in the quarter, but large losses at big banks swamped those results.
In a sign that investors were heading for the safety of cash deposits during this economic crisis, total deposits increased by $307.9 billion, or 3.5%, the largest percentage increase in a decade.
And, the agency reported, at year-end, nearly 98% of all insured institutions, representing almost 99% of industry assets, met or exceeded the highest regulatory capital standards.
"Public confidence in the banking system and deposit insurance is demonstrated by the increase in domestic deposits during the fourth quarter," FDIC Chairman Sheila Bair said. "Clearly, people see an FDIC-insured account as a safe haven for their money in difficult times."