FDIC Says 171 Banks on Watch List

WASHINGTON - The number of problem U.S. banks and thrifts jumped in the third quarter to 171, from 117 at the end of the prior quarter, marking the highest level since the end of 1995 and adding to expectations that more banks will fail, regulators said on Tuesday.

The Federal Deposit Insurance Corp said the industry-funded reserve to back deposits was $34.6 bln as of September 30, a 23.5 percent decrease from the previous quarter.

The FDIC also reported that bank industry income fell 94 percent from the previous year to $1.7 billion in the third quarter.