Sunday, July 19, 2009

Bank Closure In July 09 - Mid-Month Update

July is shaping up to be the worst month in terms of bank closures since the current recession started. On Friday July 17, FDIC closed four banks (2 in California, 1 in South Dakota, one in Georgia). The total number of banks closed so far in July is 12.

Just remember: FDIC's reserve ratio as of March 31, 2009 was 0.27%. In other words, FDIC had $13 billion at hand at the end of March. This week's 4 bank failures cost FDIC over $1 billion.


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