“Bank Foreclosures On the Rise!”

Foreclosures have been benign for the last two months.

On Friday the FDIC took over three more banks including another in Illinois. Two banks were also closed in Colorado bringing the 2011 total to 51.

In May and June only 9 banks were taken over by the FDIC.

But during that time Georgia lost four more banks, the 10th through the 13th this year and 65 since the crisis began. Florida also lost two, its 5th and 6th of the year and 51st since January of 2008.

The two months only cost the Deposit Insurance Fund $523.5 million which was great news compared to the weekly numbers over the last few years.

So, is the increase in July a sign that things are reversing? The three banks seized on Friday will cost the DIF $590.4 million—we’re back to half-a-billion dollars again. More than the total of the previous two months.

Despite the two good months, banks are still in jeopardy given the fragility of the economy and the markets. A downturn in the markets, increased unemployment, problems in China or Europe, or more devastating natural disasters could have an adverse effect on the banking system.

So banks are still something we should watch and be concerned about.

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