Bank Closures At 37
This is scary; so far in 2010, 37 banks have been closed, with 7 banks being closed on Friday. For comparison purposes, last year around this time there were only 21 banks closed. As a matter of fact, there’s the possibility that if 5 banks are closed by this Friday it’ll double what was closed in the same period last year, as it was by the 27th, the last Friday of the month last year, that 21st bank closed.
The largest of the banks to close was Advanta Bank of Utah, with over $1.5 billion in deposits, and it was the only bank for which the FDIC couldn’t find a buyer, which means a lot of people are going to be getting checks in the mail. No word on how many of those depositor’s accounts were more than $250,000, but since it’s being reported that the cost to the FDIC is around $636 million, some people are going to be losing money on this deal.
Georgia is still in a major mess, as 3 of the banks that were closed came from there. They had the highest number of banks to close in 2009, and it looks like 2010 isn’t faring much better for them. If you have the stomach for it, you can follow the closed banks list like I do; misery loves company after all.