US commerical banks insured by the Federal Deposit Insurance Corporation (FDIC) posted a collective loss of Rs 1.31 lakh crore in the Oct-Dec quarter of 2008.

FDIC chief, Sheila Bair said that there will be no quick fix to the banking crisis.

It was one of the worst quarter for US banks compared to Rs 2875 crore profit in the same quarter last year.

In 2008, 25 insured institutions with assets of $372 billion (Rs 18,60,000 crore) failed, the largest number of failures since 1993 when 41 institutions with combined assets of $3.8 billion failed.

FDIC reported that the 252 troubled institutions hold a combined $159 billion in assets compared to 171 institutions holding $116 billion in assets in the previous quarter.