Friday, September 18, 2009

If You Think the Banking Crises Has Ended, Think Again

If you think the banking crises is over with, you might want to take a look at the above chart. (Data source: FDIC) Today, the Federal Deposit Insurance Corp. shut down Irwin Union Bank FSB in Kentucky and Irwin Union Bank and Trust Co. in Indiana. This makes a total of 94 bank failures this year, a substantial increase over 24 failures in 2008, and three in 2007. And there are still three and a half months to go for the rest of the year.

One item to be aware of in the above chart is that the month of September isn't over yet. There may be many more closures and failures in the coming months. Hopefully, July 2009 was the all time high and we are now in a downtrend. But if the September trend continues, there will be about 17 total closures for the month, less than July but still very high.


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