FierceFinanceFierceFinanceITFierceComplianceIT   FierceCIO

More bank failures coming

Tools
Tags
Real Estate Loans
Meredith Whitney
FDIC
banks
Bank Failure

So far this year, the Federal Deposit Insurance Corp. has shut down 92 banks. That compares with 25 banks last year. Business Week notes that this might be seen as surprisingly few closures. During the last banking crisis, 381 banks were seized in 1990, 268 in 1991, and 179 in 1992. But the crisis isn't over, and the pace of bank failures is picking up.

Three banks failed over the last few days, including Corus Bank of Illinois. Since July 1, the FDIC has closed down 47 banks. Meredith Whitney predicted not too long ago that 300 banks would fail this year. That's looking more and more prescient every week. Real estate, retail and especially commercial, remains the culprit. Construction loans are also creaking right now.  

For more:
- here's the article

Related Articles:
Whitney: "Early on in bank closures" (Video)
How many banks will fail?
Pain ahead for regional banks?
Meredith Whitney correct about Goldman Sachs
Whitney helps Wall Street rally

Bookmark and Share
Get Your FREE FierceFinance Email Newsletter:
Comments (1) | Post a comment

Comments

Bank failures, what an ominous portent; let us consider an alternative. Wade through the statistics of the experts and become confused as to who, what, where, why and how; but be assured that all share a commonality.... relieving both the investors and the banking industry, of the overwhelming feeling that there's just too little to go around. Although, this may sound naive, perhaps what is needed is the resurrection of the good old Bartering System? Successful big companies helping fledgling small companies; in turn, small companies hiring struggling individuals; all based on a commitment to mutual growth; an inexpensive swapping of skills and times. Hopefully, the sense of stability deriving from such actions, will free all concerned to invest. Slowly, consistently informed, and optimistically certain; businesses and individuals will prosper. Then, the banking industry, being no different than any other creature in nature; will weed out the weak and unnecessary, insuring their over-all survival.

Post new comment

The content of this field is kept private and will not be shown publicly.

More information about formatting options

To combat spam, please enter the code in the image.