Unbelievably, two more banks fail in Georgia!
On Friday, five more banks failed and were taken over bringing the year’s total to 38 closures by the FDIC.
The five closed last Friday brought July’s total to seven equalling June’s total. This is only the second time in 2012 that five banks were seized in a single week.
But the big news was the loss of two more Georgia banks, the seventh and eighth this year and the 83rd failure in Georgia since the crisis began in 2008.
Georgia’s the worst, but others are not far behind.
Florida and Illinois have lost five each this year raising their crisis totals to 58 and 48 respectively.
The cost of the five banks closed on Friday to the Deposit Insurance Fund is a mere $150 million, $77 million of that from the partial sale of Second Federal Savings and Loan Association assets to Hinsdale Bank and Trust Company of Illinois. The FDIC had to retain the bank’s liabilities for later disposition.
Later this month the FDIC will release its quarterly report giving us a better picture of the health of the banking sector. It will show that we have lost 452 banks since the crisis began and that the number of banks in the United States has declined.
The number of lost banks is likely to grow if the downturn in the economy expected in the second half of the year materializes.
Hold on because we’re not done yet.