July 23rd, 2010
Bank #101 Fails Today… Not A Milestone To Celebrate
When a Minnesota bank closed today, the total number of failed banks this year passed the 100th tally mark. The wave of bank failures that began in 2008 has calmed for big banks who have been able to fare better this year amidst a recovering economy. However, tight credit and other enduring effects of the financial crisis are still affecting smaller bank and local lenders.
Smaller, community banks are more likely to fail, according to CNN Money, due especially in part to mounting loan losses and suffering commercial real estate sectors; in contrast, big banks have been better equipped to return to profitability.
A spokesman from the Federal Deposit Insurance Corp expects the number of failed banks to exceed last year’s 140 tally. However, the pace has quickened since last year, when only 57 banks were closed by this time in July 2009.
However, the FDIC also points out that financial institutions collective earned about $18 billion in the first part of 2010, which is the highest profit seen since the beginning of 2008. This suggests that, perhaps, the banking industry is recovering from the worst of it—at least for the big, financial firms.
Keep up-to-date on bank failure-watch with MyBankTracker’s Failed Bank List of 2010.
Related posts:
- How Will Bank Failures Affect You? As the news gets into a frenzy over the recent bank failures, the failed bid for a bailout and the...
- Ally Bank: Finally, a bank on the consumer’s side ...
- Will Bank Transfer Day Take Down Big Banks? Occupy Wall Street has received a lot of media attention due in large part to the protests and arrests...
- 2010 Hits Record of 125 Failed Banks… So Far. Six banks closed this past weekend, bringing the year’s tally of bank closings to 125. It’s gotten so bad in...
- 5 Reasons to Love Your Bank The blog lately has been spreading a lot of credit union love. And now I’m here to spread a little...
