Federal Deposit Insurance Corporation

Bank Losses Mount in Q4; FDIC Hikes Deposit Insurance Premiums 

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation reported Thursday a collective loss of $26.2 billion in the fourth quarter of 2008, a decline of $27.8 billion from the $575 million that the industry earned in the fourth quarter of 2007 — and the first quarterly loss recorded by the U.S. banking industry since 1990. Rising loan-loss provisions, losses from trading activities and goodwill write-downs all contributed to the quarterly loss, as banks continued to repair their balance sheets, the FDIC said.