She said this is one of the most difficult periods in the FDIC's 75 year history of operation.
In 2008 there were 292 bank mergers, 25 bank failures, 5 FDIC "assistance transactions." The 25 bank failures was the largest number since 1993.
There are now a total of 8,305 FDIC insured banks and savings and loans.
The banking industry lost $26.2 Billion in the fourth quarter of 2008. Worst since 1990.
Full year net income was down 84% to $16.1B, also the lowest since 1990.
FDIC reserve for bank failures fell by $16B and now stands at $19B.
The FDIC may ask for a special assessment on the industry banks to recharge their reserves.
The good news was Domestic Deposits Increased by 3.8 Percent
"Public confidence in the banking system and deposit insurance is demonstrated by the increase in domestic deposits during the fourth quarter," FDIC Chairman Sheila Bair said. "Clearly, people see an FDIC-insured account as a safe haven for their money in difficult times."The FDIC does not name names on this list of "troubled banks" to reduce the odds of a run on those banks.