This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank Failures May Accelerate in 2010

Stocks in this article: USB ZION JPM

NEW YORK ( TheStreet) -- With three banks that were shuttered Friday, there have been 133 U.S. bank and thrift failures this year, more than five times as many as in 2008. Tougher regulations may accelerate the pace next year.

The implosion of several large residential mortgage lenders in 2008 gave way to troubled community lenders, which were hobbled by commercial-construction and real-estate loans that soured.

All bank and thrift failures for 2008 and 2009 are detailed in's interactive bank-failure map:


The bank-failure map is color-coded, with states having the greatest number of failures highlighted in red, and states with none in gray. Rolling over a state reveals combined 2008-2009 totals. Pinpointing the locations provides additional information.

During 2009, many failed institutions were sold to healthier banks, with the Federal Deposit Insurance Corp. agreeing to share in losses on acquired assets. Holding companies taking advantage of generous terms include New York Community Bancorp (NYB), which took over deposits and some assets of AmTrust on Dec. 5.

Making multiple purchases were U.S. Bancorp (USB), Zions Bancorp (ZION), First Financial (FFBC), Great Southern (GSBC), IBERIABANK (IBKC) and MB Financial (MBFI).

Government efforts to limit failures

When federal regulators shut down IndyMac Bank in July 2008, depositors lost an estimated $540 million on uninsured balances. That was the costliest failure for depositors in the current credit cycle.

Despite the vast increase in the number of bank and thrift failures, losses to depositors with uninsured balances have totaled $60 million this year based on initial FDIC estimates, a fraction of the $609 million in 2008. The decline reflected the temporary increase in deposit-insurance limits and the requirement that healthier banks must acquire all deposits from failed institutions.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs