The Federal Deposit Insurance Corporation or the FDIC has placed 703 banks on its list of problem banks, which is the highest since 1993. The FDIC is expectng $20 billion in additional losses for 2010. However, the agency does not believe it will need to access its emergency reserve fund with the US Treasury. Most of the lsses have already been accounted for by the banks. Last year, the fund fell into the red and required member banks to pre-pay their quarterly assessments to bring the fundi back up to normal levels. The fund is attempting to attract non-traditinal buyers of the bank assets such as investment groups and private equity firms.
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