The number of banks that had too high a level of bad loans rose in the final quarter of 2009. This is according to the American University in Washington, D.C. study conducted by the “Investigating Reporting Workshop.” This is a serious matter, when many have been lulled into believing the banking crisis is over.

The number of banks with poor troubled assets ratio was listed as 389. If a bank’s ratio of troubled assets rises above the 100 rating, there is a problem. The troubled assets ratio means that there are more bad loans on the books of the banks, than can be covered by money set aside for such an eventuality.

The FDIC (Federal Deposit Insurance Corporation), closed 140 banks in 2009. This corporation guarantees ordinary savings and Certificates of Deposit. They did not insure Money Market Funds until the present banking crisis hit.

Banks are again getting involved in risks that caused the problem the country is going though. This might be due to the ‘moral hazard’ situation. The banks are still under the impression that they will be bailed out. Nothing so far in the way of legislation has dispelled that rumor. Legislators want to again separate depositor money from the funds the banks use for risky investments.