Skip to comments.Regulators close banks in Colorado, Florida, Georgia for total of 84 bank failures in 2011
Posted on 10/21/2011 8:42:11 PM PDT by freespirited
Regulators on Friday closed two banks in Georgia and one each in Florida and Colorado, raising to 84 the number of U.S. banks that have failed this year.
The number of closures has fallen sharply this year as banks have worked their way through bad debt. By this time last year, regulators had shuttered 139 banks.
FDIC seized the four banks. The largest by far was Community Banks of Colorado, based in Greenwood ... Also shuttered were Community Capital Bank, Jonesboro, Ga. ... Decatur First Bank ... and Old Harbor Bank, Clearwater, Fla.
Georgia and Florida have been among the hardest-hit states for bank failures. ... The failures of Community Capital Bank and Decatur First Bank brought to 22 the number of Georgia lenders shut down this year. Old Harbor was the 12th bank shuttered in Florida.
California and Illinois also have seen large numbers of bank failures.
In all of 2010, regulators seized 157 banks, the most in any year since the savings and loan crisis two decades ago. Those failures cost around $23 billion. FDIC has said 2010 likely was the high-water mark for bank failures from the Great Recession.
In 2009, there were 140 bank failures that cost the insurance fund about $36 billion, a higher price tag than in 2010 because the banks involved were bigger on average. Twenty-five banks failed in 2008, the year the financial crisis struck with force; only three were closed in 2007.
From 2008 through 2010, bank failures cost the fund $76.8 billion. The FDIC expects failures from 2011 through 2015 to cost $19 billion.
The deposit insurance fund fell into the red in 2009. With failures slowing, the FDICs fund balance turned positive in the second quarter of this year; it stood at $3.9 billion as of June 30.
(Excerpt) Read more at washingtonpost.com ...
Things are getting worse. Sears is on the way out. The Fashion Bug stores are closing. The Gap is looking at closing 200 stores. Lowe’s is in big trouble.
Our bank, Sun Security, just bit the dust. The bank that took them over is barely floating. The gloom and doom is close to home here.
A lot of this is really about the fact that people have been using their house equity as a credit card for the past 20 years. As people stop doing that, and start spending responsibly, it means less room for retail shopping and luxury goods. So places like the GAP (Which has not been doing very well as a retailer lately, even pre-2009) are going to suffer. The trick is we need to drive demand and also start exporting b2b items like more services and heavy industrial equipment and the like. Growth isn’t going to come from domestic consumer spending in the next five years.
Chances are you already know about this site - but I’ll post it anyways.
I exported it to Excel and started messing with the spreadsheet.
Here it is:
There are hundreds of failed banks-in-waiting, and the FDIC’s list is growing. Last year it’s list was over four hundred and there were hundreds of additional “troubled” banks beyond their immediate list.
The FDIC only has enough trained failed-bank personnel to process up to five failed banks a week on average, and as the FDIC insurance fund collected premiums 3 years in advance last year, and now has only a small number of billions left out of their $50 Billion insurance fund funded by member bank premiums, it can only process the banks with smaller insolvent status.
They really do not want to handle BofA if and when it is ready to go under. FDIC insures over $7T in deposits with only up to %50B in its insurance fund. I think I read two weeks ago that there was only $3.5B left in the fund at the current time.
Yup.....this “service economy” has really worked out well for the USA s/
Thuggery, you pay to play
I suspect that is the case in some of these "mergers" and why we haven't had more bank failures. FDIC is as good as broke. No way they can cover the losse$ of a major bank.
There may have been a few banks that were simply "closed" but for the most part, FDIC doesn't like to do this. Scares hell out of depositors. Mergers, forced or otherwise are preferable.
Should say source for my post above-the numbers-is FDIC site itself.
They have a line of credit to the Treasury but I am sure you are right, no way would it cover a Bank of America type failure.