With four closings today, totaling 8 in October, the FDIC closed bank list broke 100 to reach 103 for the year.
Today there were 3 Florida banks and 1 Georgia bank. The ramifications are many.
At present the FDIC fund is stretched.
The loss of local banks always has adverse local impact. Of course these banks are not lost, only sold. And most depositors are protected.
The local bank though becomes part of a larger bank.
The worst news is that some projections look to as many a 400 more bank closings can be expected over the next few years, costing as much as $100 billion.
The recovery may be underway, propped up by massive federal spending and tax credit.
Unemployment, commercial real estate, closed businesses and lost industries, have not yet finished taking their toll.
I hate to end the week on a negative.
Congress and regulators are looking at changes to improve the capital structure of the financial markets and institutions. Federal Reserve Chairman Ben Bernanke called today for quick Congressional action to finalize new legislation for capital requirements and to improve regulation and supervisory enforcement.
We have a ways to go.
Update: 3 more banks, in WI, MN, and IL, were closed yesterday after I wrote this post. Total now 106, and counting.
;)
;)
Richard- Interesting. It's not over and that is OK. We will get through this. Thanks for the update. So more small banks will fail because perhaps they may not be able to come up with an additional 3 years of insurance premiums ahead of time. Hmmm, she says they have a credit line with the treasury department and they never have to use tax payers money. My question is, where does the treasury department get their money from? Or is it just print on demand. Katerina