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100th and 101st bank failures of 2009

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posted on Oct, 23 2009 @ 05:45 PM
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Bank closings for the year surpassed 100 on Friday when regulators shut down small banks in Florida and Georgia. Financial institutions nationwide have collapsed under the weight of soured real estate loans and a brutal recession.
The Federal Deposit Insurance Corp. took over Partners Bank, a small bank in Naples, with $68.7 million in assets and $63.4 million in deposits. Stonegate Bank, based in Fort Lauderdale, Fla., agreed to buy the deposits and assets of Partners Bank.

American United Bank in Lawrenceville, Ga., with $111 million in assets and $101 million in deposits also failed. Ameris Bank, based in Moultrie, Ga., is buying its deposits and assets.

The 101 failures are the most in a year since 1992 at the height of the savings-and-loan crisis. They have cost the federal deposit insurance fund about $25 billion so far this year, and hundreds more bank failures are expected to raise the cost to around $100 billion through 2013

The 101 bank failures this year compare with 25 last year and three in 2007. It's the highest number in a year since 1992 during the savings-and-loan crisis, when 120 institutions collapsed. Closures peaked during that crisis in 1989, when 534 banks were shuttered.

www.usatoday.com...

a dubious milestone indeed but looking at 1989, as far as bank closures go, we could be doing worse..




posted on Oct, 23 2009 @ 05:55 PM
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Originally posted by TheCoffinman

Bank closings for the year surpassed 100 on Friday when regulators shut down small banks in Florida and Georgia. Financial institutions nationwide have collapsed under the weight of soured real estate loans and a brutal recession.
The Federal Deposit Insurance Corp. took over Partners Bank, a small bank in Naples, with $68.7 million in assets and $63.4 million in deposits. Stonegate Bank, based in Fort Lauderdale, Fla., agreed to buy the deposits and assets of Partners Bank.

American United Bank in Lawrenceville, Ga., with $111 million in assets and $101 million in deposits also failed. Ameris Bank, based in Moultrie, Ga., is buying its deposits and assets.

The 101 failures are the most in a year since 1992 at the height of the savings-and-loan crisis. They have cost the federal deposit insurance fund about $25 billion so far this year, and hundreds more bank failures are expected to raise the cost to around $100 billion through 2013

The 101 bank failures this year compare with 25 last year and three in 2007. It's the highest number in a year since 1992 during the savings-and-loan crisis, when 120 institutions collapsed. Closures peaked during that crisis in 1989, when 534 banks were shuttered.

www.usatoday.com...

a dubious milestone indeed but looking at 1989, as far as bank closures go, we could be doing worse..


Very true. But all things not being equal here... I wonder what was the cost to the FDIC (in inflation adjusted dollars) in 1989 compared to this year? 1,000 banks could fail and not be a big deal if they are all tiny.

Unfortunately, I do not have the numbers. I will check around though...



posted on Oct, 23 2009 @ 07:00 PM
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reply to post by nydsdan
 


good thinkin... lemme know



posted on Oct, 23 2009 @ 09:27 PM
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Also you gotta remember the amount of consolidation in the financial industry since the S&L crisis in the late eighties early 90's. Sure they had over 500 failures then but how many branches? I'd like to see a number of branches of failed banks from the S&L to the total number of branches in this one. The majority so far in this one have been banks with a handful of branches at most with some pretty big ones like Colonial, Corus, and a coupe of others that were pretty big.

Oh and last I heard tonight, since this thread has been posted. We are up to 106. So this is a 7 closure friday.




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