17 Banks Fail As of Jan 28th 2011

[HarryRenard]

Having said all that I don't believe this info is somethine to be used in the process of a sale and I would only reluctantly discuss it with a client if they specifically brought it up...I think consumers losing trust in banks could translate into mistrust of insurance carriers just as quickly or faster.

Agreed, you shouldn't use this to make the banks look unsafe because they really aren't but you can use it to show people that we are in different times and show them there is some instability out there and how important it is to change their mindset and look into to other places to put their money.

 

[Norwayguy]

Problem banks grow in fourth quarter, FDIC says - MarketWatch

 

[Norwayguy]

Regulators Close Small Ill. Bank; Makes 23 in 2011 - ABC News

The 2009 failures cost the insurance fund about $36 billion. The failures last year cost around $21 billion, a lower price tag because the banks that failed in 2010 were smaller on average. Twenty-five banks failed in 2008, the year the financial crisis struck with force; only three succumbed in 2007.
The growing number of bank failures has sapped billions of dollars out of the deposit insurance fund. It fell into the red in 2009, and its deficit stood at $7.4 billion as of Dec. 31.
The number of banks on the FDIC's confidential "problem" list rose to 884 in the final quarter of last year from 860 three months earlier. The 884 troubled banks is the highest number since 1993, during the savings-and-loan crisis.

 

[Norwayguy]

Well things seem to finally be slowing down...The FDIC only closed two banks since Feb 25th...Both on March 11th.

 

[xrac]

Well things seem to finally be slowing down...The FDIC only closed two banks since Feb 25th...Both on March 11th.

One here in our town is about to go under, Integra.

 

[Mark]

They closed one down in Zebulon GA 2 months ago...

They showed up with about 50 cars late at night and I thought the bank had been held up.

It was crazy..

 

[Norwayguy]

They closed one down in Zebulon GA 2 months ago...

They showed up with about 50 cars late at night and I thought the bank had been held up.

It was crazy..

Was it a Friday? It seems like they close these banks on Fridays to give them the weekend.

 

[Mark]

Was it a Friday? It seems like they close these banks on Fridays to give them the weekend.

I think it was a Friday. I called my mother to tell her that I thought the bank had been held up. SHe told me about the FDIC was taking over the bank.

 

[Norwayguy]

The Associated Press: Small Illinois bank fails; 26th shuttered in 2011

Small Illinois bank fails; 26th shuttered in 2011
(AP) – 2 hours ago
WASHINGTON (AP) — Regulators on Friday shut down a small bank in Illinois, boosting to 26 the number of U.S. bank failures this year after 157 succumbed in 2010 to the sputtering economy and piles of soured loans.
The Federal Deposit Insurance Corp. seized Bank of Commerce, with one office in Wood Dale, Ill., $163.1 million in assets and $161.4 million in deposits. Advantage National Bank Group, based in Elk Grove Village, Ill., agreed to assume the assets and deposits of the failed bank.
In addition, the FDIC and Advantage National Bank Group agreed to share losses on $145.7 million of Bank of Commerce's loans and other assets.
The failure of Bank of Commerce is expected to cost the deposit insurance fund $41.9 million.
Illinois has been one of the hardest-hit states for bank failures. Sixteen banks were shuttered in the state last year. The shutdown of Bank of Commerce was the third bank failure in Illinois this year.
California, Florida and Georgia also have seen large numbers of bank failures.
The 157 bank closures last year topped the 140 shuttered in 2009. It was the most in a year since the savings-and-loan crisis two decades ago.
The FDIC has said that 2010 likely would be the peak for bank failures. Already this year the pace of closures has slowed: By this time last year, regulators had closed 41 banks.
The 2009 failures cost the insurance fund about $36 billion. The failures last year cost around $21 billion, a lower price tag because the banks that failed in 2010 were smaller on average. Twenty-five banks failed in 2008, the year the financial crisis struck with force; only three were closed in 2007.
The growing number of bank failures has sapped billions of dollars out of the deposit insurance fund. It fell into the red in 2009, and its deficit stood at $7.4 billion as of Dec. 31.
The number of banks on the FDIC's confidential "problem" list rose to 884 in the final quarter of last year from 860 three months earlier. The 884 troubled banks is the highest number since 1993, during the savings-and-loan crisis.
The FDIC expects the cost of resolving failed banks to total around $52 billion from 2010 through 2014.
Depositors' money — insured up to $250,000 per account — is not at risk, with the FDIC backed by the government. That insurance cap was made permanent in the financial overhaul law enacted in July.

 

[BillIAm]

Banks are a business just like any other business. The difference is they are insured by the FDIC thus are tracked on their failures. The failures mean nothing more than failed business attempts. I believe if tracked, you would probably find many more Insurance Agencies who have failed. The story is different when dealing with larger national banks or large regional banks. These failures will reflect the economic condition of the area they serve.