What is it with bank failures in the US?

R

rbaggio

Active Member
Silver Stacker
Thought 1

I was reading Harvey Organ's blog today, and he often gives an update as to newly-closed US banks.

* 140 US banks failed in 2009
* 157 US banks failed in 2010

What the heck is going on? Is this still fallout from subprime lending?

Thought 2

If 1 bank or building society/credit union went bust in Australia, it would make national headlines for weeks.

Then I dug up this document, showing numerous Aussie bank failures over the past 30 years or so (I could only recall Pyramid):

http://fsgstudy.treasury.gov.au/content/_download/Davis_Report/rtf/24_Appendix4-2.rtf
 
The big boys are closing them down. Too small to survive and the FDIC won't help is how I understand it, but overall more evidence of the USA's financial calamity.
 
JulieW said:
The big boys are closing them down. Too small to survive and the FDIC won't help is how I understand it, but overall more evidence of the USA's financial calamity.
Click to expand...
Yeah, I'd like to know when the phrase "don't put all your eggs in one basket" became redundant, because this is where it's headed.
 
PerthStack said:
JulieW said:
The big boys are closing them down. Too small to survive and the FDIC won't help is how I understand it, but overall more evidence of the USA's financial calamity.
Click to expand...
Yeah, I'd like to know when the phrase "don't put all your eggs in one basket" became redundant, because this is where it's headed.
Click to expand...
What did the big basket say when it saw the little basket?

nom nom nom...
 
Did someone say basket???!!!

yogi-and-boo-boo.jpg


:)
 
When the financial crisis of 07 and 08 was in full flight, every week I would log on to a website (I can't remember which one) which reported on which banks in what state were taken over by the FDIC.

The FDIC would take over the bank at close on Friday closing time and reopen under another bank's name on Monday. No depositors lost any money in the swap over. (The banks would be auctioned of over the weekend) If not sold the FDIC would purchase them.

The banks that were taken over were pretty small by USA standards but one particular thing stood out. They had shareholders and investors with assets of say $3million and home loans three or four times as much.

They always had figures stating bank foreclosures for 09 and 08 compared with 1930/32.

I'm sure some of the financial gurus on SS can add a lot of detailed on the subject.

Regards Errol43
 
errol43 said:
When the financial crisis of 07 and 08 was in full flight, every week I would log on to a website (I can't remember which one) which reported on which banks in what state were taken over by the FDIC.

The FDIC would take over the bank at close on Friday closing time and reopen under another bank's name on Monday. No depositors lost any money in the swap over. (The banks would be auctioned of over the weekend) If not sold the FDIC would purchase them.

The banks that were taken over were pretty small by USA standards but one particular thing stood out. They had shareholders and investors with assets of say $3million and home loans three or four times as much.

They always had figures stating bank foreclosures for 09 and 08 compared with 1930/32.

I'm sure some of the financial gurus on SS can add a lot of detailed on the subject.

Regards Errol43
Click to expand...

The failed bank list?

http://www.fdic.gov/bank/individual/failed/banklist.html
 
The entire history of banking in america has been anti competitive.

[youtube]http://www.youtube.com/watch?v=VTs2ttdKatQ[/youtube]
 
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