9 bank closures brings the 2009 total to 115


Regulators shut down nine more banks last Friday, bringing the total for the year to 115. Nine subsidiaries of FBOP Corp., a multistate holding company that included California National Bank of Los Angeles, are the latest casualties of the banking crisis.

The FDIC announced that U.S. Bancorp of Minneapolis has agreed to assume the deposits and assets of the failed banks. The FDIC and U.S. Bank agreed to share losses on about $14.4 billion of the combined purchased assets.

This year’s bank failures have already reduced the FDIC’s insurance fund to below $10 billion, from $45 billion a year ago. Friday’s closures will cost the FDIC an estimated $2.5 billion. Over the next four years, the agency expects bank closures will cost over $100 billion.

There are about 8,000 banks in the nation. The bank failure count for 2009 is below 1989’s record high of 534 bank closures, which occurred during the savings and loan crisis.

I have several concerns:

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~ by ameanderingmuse on November 3, 2009.

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