This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

Bank Failures May Accelerate in 2010

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 TheStreet.com's interactive bank-failure map:

chart

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 - Get Report), Zions Bancorp (ZION - Get Report), First Financial (FFBC - Get Report), Great Southern (GSBC - Get Report), IBERIABANK (IBKC - Get Report) and MB Financial (MBFI - Get Report).

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
ZION $26.94 -0.22%
FFBC $17.88 0.39%
GSBC $39.34 -0.13%
JPM $59.96 -0.37%
IBKC $63.16 0.21%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs