The health of U.S. banks is quickly deteriorating, and the government
fund set up to protect depositors might not have enough money to
insure everybody, analysts told ABCNews.com.

Bad residential real estate loans force financial institutions into
the red.  Thanks to a collapsing housing market and a weak economy, a
growing number of banks are struggling to stay afloat, with not enough
cash on hand to cover losses from bad loans.

At the beginning of the year, 90 banks were on the FDIC watch list.
There are now 117, FDIC chairwoman Sheila C. Bair announced at a news
conference this afternoon. That is the highest number in five years,
but some analysts expect the list to grow even more in coming months.

http://abcnews.go.com/Business/Story?id=5660122

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