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.www.usatoday.com...
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.
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...
