YTD Bank Closures 96 as of 7.16.2010
Almost every Friday now, the FDIC closes banks and takes over them. There was a big jump from last week’s YTD Bank Closures 90 as of 7.09.2010. These banks are not one unit stand alone banks, but banks with many branches. That is why the deposits are in the multimillion dollar range. Don’t worry about your cash because these banks are insured by the FDIC up to $250,000 for now.
What we should be worried about is the effects on the overall economy. The reason why banks are not making loans even after we, the US taxpayer, bailed them out is because they are insolvent and can’t afford the risks of more delinquency and defaults. Remember, the banks use to complete the foreclosure process 3-4 months, but now take up to 18-24 months. This manipulates their true numbers as far as how profitable they are since they are not writing off those losses because of the delay.
FDIC: NAFH National Bank, Miami, Florida, Acquires All the Deposi...
Lily Allen
Nadine Velazquez
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