Saturday, January 17, 2009

First Bank Failures of 2009

The first bank closings of the new year are finally upon us. National Bank of Commerce, an Illinois bank, and Bank of Clark county, a Washington bank, have both been closed by regulators over the weekend.

Considering the state of the economy, the failure activity has been remarkably low. The bank closure map that details the locations of all the bank closings in the US shows that only a few banks have closed each month for the past year.

If you look at the map, you'll notice that a lot of the activity so far is centralized in the upper right hand portion of the map. But, don't be fooled. A LOT of banks are about to go down.

I thought it would happen last year. But, apparently, the dam is still holding. But, it can't last forever. Let's see how the distribution progresses in 2009, especially with what is happening with BoA and Citi right now.