Quick Hit: “A Decent Month for FDIC!”

May was a good month for the FDIC and the Deposit Insurance Fund.

The 14 banks shut down by the bank overseer will only cost $830 million dollars.

This is a great victory after the disastrous April, when the Fund was drained of $9.5 billion. The largest foreclosure in May cost the Deposit Insurance Fund only $216 million.

Florida lost 3 more banks on Friday increasing their total failures to 29 since the beginning of 2008. Combined, the trio cost the DIF $203 million.

Troublesome and somewhat overshadowing the good news in May is the increase in the number of troubled institutions. Another 73 banks were added to the Watch List in the first quarter of 2010. There are now 775 banks under the watchful eye of the FDIC.

The quarterly number slowed considerably, but still increased. Combined with the positive numbers in May there is hope that the improvement is sustainable.

Sustainability is what is needed in this tenuous financial world.

We’ll keep a sharp eye on June and hope for the best!

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