84 Banks Closed And Counting
August is going out with a bang as it concerns bank closings.
Last week three more banks were closed. Those banks were:
Bradford Bank, based in Baltimore, MD, which operated nine branches, reopened Monday as part of Manufacturers and Traders Trust Company, based in Albany, NY.
Mainstreet Bank of Forest Lake, MI, which had eight branches, will be taken over by Central Bank.
Affinity Bank of Ventura, CA, which had 10 branches, will be taken over by Pacific Western Bank.
Banks are closing so fast that I missed this one, Guaranty Bank in Texas, which had about $13 billion in assets and was the third-largest bank to fail this year.
As bad as this year is, it’s not close to 1992, when 181 banks failed. It’s also nowhere close to the 416 banks that are on the danger list, or the 1,000 banks that someone is predicting could close within the next couple of years.
Also, I think it’s important to note that the overwhelming majority of these banks have been consumed by other banks, even if it was the FDIC that facilitated the joining, and they wouldn’t be sending bad banks to other bad banks just to bide time. So, this might be a good shakeout of bad banks and the strengthening of the reserves of other banks. I’m not sure; trying to find a silver lining in the process here.
This is almost like the bank closures of the week site; there has to be some good financial news out there somewhere, right?