Rising Costs of US Bank Failures
Since the outbreak of the financial market crisis, around 120 US banks have failed. The median cost of a bank failure to the FDIC has amounted to a staggering 28% of that banks assets. Furthermore, the cost of a bank failure has gone up steadily in the past two years and is now around one third of a failed banks assets. In its latest Quarterly Banking Profile, the FDIC counts 416 “problem” institutions with aggregate assets of around $300 billion. The Deposit Insurance Fund is basically exhausted. Bottom line: the FDIC will need a whole lot more money.
Posted: September 28th, 2009 under International.
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