The U.S. banking industry lost $10.6 billion...

The U.S. banking industry lost $10.6 billion in the second quarter of this year, the first quarterly loss reported since the Depression. Federal Deposit Insurance Corp. Chairman L. William Seidman called the loss “clearly the worst quarter in the history of the industry since the FDIC began operating in 1934.” He attributed the loss to the $21.2-billion loss reserve set aside by the biggest money center banks in anticipation of problems collecting huge Third World debts. Seidman said he expected bank earnings to rebound in the second half.