More US banks are struggling

The number of US banks in financial difficulty jumped by 40 per cent in the first quarter, the US Federal Deposit Insurance Corporation (FDIC) said yesterday. The FDIC said 305 banks were still struggling in the period between January and March, up from 252 in the previous quarter. However, bank profits rose substantially, topping $7.6bn (£4.7bn), compared to a record loss of $36.9bn for October-December, but 61 per cent down on the same quarter last year.