Bank Closures Accelerating
Today is Friday the 13th. So, it is strangely appropriate that the FDIC closed 4 more banks today, bringing the grand total for the year to 13 failed banks.
That's a lot of failed banks.
In 2005, there were 0 bank failures.
In 2006, there were 0 bank failures.
In 2007, there were 3 bank failures.
In 2008, there were 25 bank failures.
In 2009, there have been 13 bank failures so far.
In two months, we have racked up over half the number of failures we had all of last year. And last year was a bad year.
To look at it another way, in 2007, a bank failed every 4 months. In 2008, about two banks failed each month. But right now, we are looking at over 8 banks failing each month.
If that number holds, we could be looking at 100 banks this year. But the year has just gotten started, and the list of 'sick' banks has way more than 100 names on it.
Four closures (pun intended) in a day sets a modern record. But, if things take a turn for the worse, we could end up seeing a lot more damage each weekend than that.
That's a lot of failed banks.
In 2005, there were 0 bank failures.
In 2006, there were 0 bank failures.
In 2007, there were 3 bank failures.
In 2008, there were 25 bank failures.
In 2009, there have been 13 bank failures so far.
In two months, we have racked up over half the number of failures we had all of last year. And last year was a bad year.
To look at it another way, in 2007, a bank failed every 4 months. In 2008, about two banks failed each month. But right now, we are looking at over 8 banks failing each month.
If that number holds, we could be looking at 100 banks this year. But the year has just gotten started, and the list of 'sick' banks has way more than 100 names on it.
Four closures (pun intended) in a day sets a modern record. But, if things take a turn for the worse, we could end up seeing a lot more damage each weekend than that.
posted by SalsaFix at 3:50 AM
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