Bank Failure Friday: 6 More

[wwswimming]

The FDIC has closed 1+3+5+6 banks this January.

http://www.fdic.gov/bank/individual/failed/banklist.html

They're closing banks at a much faster rate than in 2009, 2008, & 2007.

http://www.fdic.gov/BANK/HISTORICAL/BANK/2009/index.html
http://www.fdic.gov/BANK/HISTORICAL/BANK/2008/index.html
http://www.fdic.gov/BANK/HISTORICAL/BANK/2007/index.html

WHAT THE F IS GOING ON ?

Of course many of the banks that are being closed now are smaller than Indymac & Wamu (who made it onto the 2008 list.)

But still - they're closing banks at the rate of 180 a year.

If the economy is "out of recession" - why did the FDIC close 15 banks this month ?!

Not exactly confidence inspiring.

 

[PrinceofWands]

Woohoo, 3 from WA this month. Not surprising, given unemployment rates in the mid teens for over a year.

 

[Moonbeam]

Interesting! How many banks opened?

 

[Zebo]

I think I just found a third* reason credit is tight .....solvent banks wanting to snap up assets of scuttled banks cheap.http://www.fdic.gov/buying/financial/index.html

*besides being capital restrained and few credit worthy borrowers with income theses days.

 

[Zebo]

WHAT THE F IS GOING ON ?

America is shutting down.

Another 500K first time filers for unemployment
http://www.marketwatch.com/story/initial-jobless-claims-remain-elevated-2010-01-28
Entire chains shutting down
http://www.applianceworldstores.com/
Malls shutting down nationwide
http://www.wpbf.com/money/22367060/detail.html
http://www.kfor.com/news/local/kfor-news-heritage-mall-closing-story,0,862818.story


What a recovery......prepare......I start 7 miles instead of usual, peacetime, 4-5, this sat.

 

[sandorski]

What's the Historical norm for such things. I'm sure these numbers are above that, but suspect the Norm is a good portion of it.

 

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[StageLeft]

What's the Historical norm for such things. I'm sure these numbers are above that, but suspect the Norm is a good portion of it.

In good years it's well above the norm but as I found last week or so in a similar thread there were many banks closed down in 2009, dozens in some months IIRC.

 

[ciba]

Banks don't fail immediately when the economy tanks; it takes a while for their capital to erode.

Of course, most of these banks were heavy into CRE and C&D loans. The big boys learned their lesson in the last economic cycle and avoided them, for the most part. There was acquisition exposure (see BofA by way of Countrywide and Wells Fargo by way of Wachovia / Golden West), but they weren't going out and giving builders money to speculate with as such a large part of their portfolio.

These loans are how banks like Horizon (HRZB), Columbia River (CBBO) and others pumped up their earnings over the years.

 

[LegendKiller]

America is shutting down.

Another 500K first time filers for unemployment
http://www.marketwatch.com/story/initial-jobless-claims-remain-elevated-2010-01-28
Entire chains shutting down
http://www.applianceworldstores.com/
Malls shutting down nationwide
http://www.wpbf.com/money/22367060/detail.html
http://www.kfor.com/news/local/kfor-news-heritage-mall-closing-story,0,862818.story


What a recovery......prepare......I start 7 miles instead of usual, peacetime, 4-5, this sat.

LOL, another armaggeddon post from you.


America isn't "shutting down". Overspeculation and overinvestment is shutting down. We don't need malls everywhere, nor shitty appliance stores that can't compete with big boxes.


What it comes down to is that these small banks made a lot of bad CRE loans, the national banks made almost no CRE loans and made a lot of bad mortgage loans. That's how it worked. The actions taken by the Fed/Treasury for national banks was swift, the actions taken by the OCC/OTS/Fed are somewhat slower.

Some of these banks got in over there heads. Keep in mind, there's far more local/regional banks than you think. Out of the hundreds they've closed, there are still thousands that are still open. There are more than 7,500 banks in the US with combined total branches of more than 75,000.

This is just a culling of the weak.

 

[SunSamurai]

Omg amerika is shutting down guis!!