5 more banks shut down by the FDIC costing over $300 million

May 30, 2010 by · Leave a Comment
Filed under: Bank Failure 

Five more bite the dust over the weekend.   Our total for 2010 to a whopping 78 banks put into receivership by the Federal Deposit Insurance Corporation or FDIC.  The banks ranged from Florida, Nevada and California.  They collectively cost the insurance fund $317 million dollars.  As reported by AP, the fund will be depleted $100 billion dollars by 2016.   With there no incentive to over-report these numbers, we can be safe to say that it will be much more than that once all the final numbers come in.

Banks are now pre-paying two years of deposit insurance premiums.  That is not a good sign, it shows that many more failures are expected before this expanding crisis is over.  The problem list has also expanded to 775 banks, these are banks that the FDIC are monitoring closely to see if their liabilities outstrip the assets on there respective balance-sheets.

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