The US banking system is increasingly exposed to toxic risk

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There is a higher number of "problem banks."

Those banks hold a high dollar figure in assets.

This creates potential systemic risk.

A chart from the FDIC shows the ominous data.

And its eerie exhortations to the banks to prepare for a downturn to avoid “undue disruption to the financial system.”

The FDIC’s quarterly report on commercial banks and savings institutions was cited in the media mostly for the 56 billion in profits that FDIC-insured commercial banks and savings institutions made in the first quarter, which was up 27 from a year ago. An estimated 6.6 billion of the profits were due to the tax-law changes.

It remained mostly unmentioned that this increase in profits came after the huge charge-offs banks took in the fourth quarter mostly due to write-downs of tax assets, also a result of the new tax law. These write-downs slashed bank profits in Q4 to 25 billion, the worst quarter since the Great Recession.See the rest of the story at Business InsiderNOW WATCH: NBA ref explains why the James Harden step-back jumper isn't travelingSee Also:Credit card delinquencies at smaller banks just surged past financial crisis peaksThe new Fed looks like it's ready to dump mortgage-backed securitiesFreight costs are surging and transportation companies are gaining pricing powerSEE ALSO: Trump warns North Korea against 'foolish or reckless acts' after canceling the Kim Jong Un summit

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