The number of banks in financial trouble is at an 18-year high, Colin Barr, senior writer for Fortune, says in the CNNMoney video above, with 118 recorded so far this year. That number will reach nearly 200 by the end of the year, he said, and around 1,000 by early- to mid-2011 — unseen since the 1980s.
“You get a slower economy, you get more unemployment, you get more bank failures,” he said.
With loans down 7 percent from a couple years ago, banks are not contributing to the nation’s recovery.
“Banks are kind of on the sidelines,” he said, adding, “We’re in this holding pattern.”