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Bank Failures Surge To 69 In 2009

By Mark MacKenzie

Real Estate Broker/Owner

August 01, 2009 04:47 AM

CNNMoney.com is reporting that five more banks failed on Friday bringing the total to 69 for 2009. According to the article it is estimated that the failures will cost the FDIC $912 million.

As recently as July 10th there were "only" 53 bank failures, meaning that the pace of bank failures has escalated in recent weeks.

There was a total of 25 bank failures in 2008.

The reason for the deterioration of the banking system is falling asset values, specifically commercial and residential real estate.

The solution is found in repealing or reforming an obscure tax code that dates back to 1986.

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John Mulkey

TheHousingGuru.com - Waleska, GA

Housing Guru

Mark - The FDIC is putting more pressure on banks to improve their balance sheets. Unfortunately, there's little that many can do. We'll probably see another 50 or 60 failures this year, and could see even more next year. There are hundreds of struggling community banks, and many of them won't survive. Unfortunately for them, they're not "too big to fail."

Aug 01, 2009 04:55 AM

Richard Stabile

Re/Max Real Estate Limited - Oradell, NJ

Bergen County New Homes Builder Realtor

Mark:

There will be a lot more as the paper finally gets truly marked down. As the foreclosures go forward, the banks capital is deminished.

Richard

Aug 01, 2009 05:30 AM

Darin Osenberg

Funky Quail Vintage - Nashville, TN

Who were the banks Mark? just curious! - I like knowing this stuff, but I also like knowing the reasons behind it! Blogs like this inspire me to GOOGLE!! :) Thank you!!! - Darin

Aug 01, 2009 08:32 AM

Mark MacKenzie

Phoenix, AZ

Here is the link. :)

Aug 01, 2009 08:55 AM

Thanks Mark!

D

Aug 03, 2009 02:49 PM

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