77 bank failures this year

Discussion in 'Economics' started by wildfirepow, Aug 15, 2009.

  1. You have to be aware of the key difference between then and now...

    102 bank failures that have occurred in the last 2 years have cost the FDIC depositor insurance fund 25% of assets.

    747 financial institution failures between 1989 - 1995 have cost the FDIC depositor insurance fund 19% of assets.

    FDIC ins fund is now at $13bn and there's 300 banks still on the problem list.

    Extrapolate away...

    (Source for numbers is the WSJ).
     
    #11     Aug 17, 2009
  2. I agree, in 1989 banks were small. Now the small banks have become giant banks in terms of assets and valuation.
     
    #12     Aug 17, 2009