FDIC: "Problem Bank List" declines....

As per the FDIC the second quarter “Problem Bank List” declined for the first time since 2006. Because of the lower number of expected bank failures, the FDIC deposit insurance fund was positive for the first time in two years.

Net income at the country’s bank rose 38% to $28.8 billion from a year earlier, the eighth consecutive quarterly improvement as results were boosted by a seventh consecutive drop in provisions for loan loss reserves. Charge offs declined by 42%.

The significance behind this data is huge.

In order to have a recovery, the banking system must recover first. The regulatory environment is extraordinary harsh, where the mantra is find any and all issues and force banks to reserve or charge it off.