Over 1,000 bank failures

[optimomojo]

000

[statman]

Now that FDIC member banks have replenished the insurance fund by prepaying 3 years worth of premiums ($45 billion), the FDIC is back in business closing banks:

http://apnews.myway.com/article/20100123/D9DD6LEG0.html

"The 140 bank failures last year were the highest annual tally since 1992, at the height of the savings and loan crisis. They cost the insurance fund more than $30 billion. The failures compare with 25 in 2008 and three in 2007.

The number of bank failures is expected to rise further this year. The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years.

The agency last year mandated banks to prepay about $45 billion in premiums, for 2010 through 2012, to replenish the insurance fund."

An FDIC executive in Dallas recently stated that the FDIC anticipates closing over 1,000 banks over the next couple of years. The FDIC is going to need more than "$100 billion over the next four years" to close that many banks. Maybe closer to $150 billion. I'm sure the FDIC will have member banks pay several "special assesments" and probably go begging the Feds for some money at some point.

What a mess this R/E bubble has led to.

If you work for a struggling bank, good luck holding down a job.

Or a non-struggling bank, for that matter. My company took TARP money because the Fed instructed us that we HAD TO TAKE it. We made money in both 2008 & 2009, and never showed a quarterly loss. And we've laid off ~20% of our world-wide workforce...

[byu71]

Anyone know how many Savings and Loans went under during that debacle?

[happyone]

And as has been happening, there are no other banks willing to acquire some of the failed banks:

http://apnews.myway.com/article/20100417/D9F4JQR00.html

My understanding is that this is what happened when the bank I used to bank with failed (Barnes).