Jul
23
FDIC Friday: Passing 100 Failures for the Year
From CNN Money:
A Minnesota bank was closed by government regulators Friday, the Federal Deposit Insurance Corp. said, bringing the total number of failed banks this year past 100.
We’re well on track to exceed last year’s 140 bank failures – though the FDIC is dressing this up as good news as we won’t hit the record for bank failures of 534 in 1989. Of course, it does seem that the FDIC is stringing this thing out and only taking down banks as money becomes available for FDIC action. So, there are probably a lot of hidden bank failures (banks which should be shut down, but aren’t.
And all the supposed hope for the future depends on the economy getting better and the bad loans to stop cropping up. If you believe that is going to happen, then I’ve a bridge in Brooklyn to sell you.
