“Over 400 Banks Have Fallen”

Since 2008 over 400 banks have been closed by the FDIC!

On Friday, another Georgia Bank was shuttered by the Federal Deposit Insurance Corporation along with three others, including another in Illinois.

What began with the closure of Douglass National Bank in Kansas City, Missouri on January 25th of 2008 has now spread to over 40 states and 402 banks.

The 400th bank to be seized was Blue Ridge Savings Bank in Asheville, North Carolina. It was also the 78th of the 80 closed this year. Country Bank in Aledo, Illinois was the 80th and the 41st in Illinois since the crisis began.

Since September 30 the FDIC closed seven banks. The cost to the Deposit Insurance Fund has been relatively mild, averaging $66.5 million per bank. But it is still formidable considering the equivalent cost of the banks and savings and loans closed in the 80’s.

Georgia, still on a destructive path, lost its 71st bank on Friday. It’s the 20th this year. The state’s lax banking regulations have wreaked havoc on the Georgian banking system.

They have become the example for the need of more stringent banking regulations which Republicans are vehemently fighting.

Though the number of banks closed each week has slowed vigilance is a good policy to follow until the crisis is over.

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