How Big Should the FDIC 'Problem Institution' List Be?

Food for thought. How is it that FIDC Chairman Shelia Bair said at the end of June there were 117 instructions on the problem bank list and assets of problems institutions was just $78 billion, yet in the last few days we had two massive bank failures?

Today, we know that Wachovia (NYSE: WB) was a problem institution and had $700 billion of assets, and WaMu (NYSE: WM), another failure and problem institution, had $307 billion in assets.

Between the two there was $1 trillion dollars in assets, yet neither was on the June list. How big should the list actually be?

The way things are going, it seems that only a few banks should be left off the list. Maybe they should come up with the 'Non-Problem Institution List'. The list would be short, about three to five banks long: Bank of America (NYSE: BAC), JPMorgan (NYSE: JPM), Goldman Sachs (NYSE: GS) and maybe Citi (NYSE: C) and Wells Fargo (NYSE: WFC).

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