David, Associate Economist
July 27, 2010
FDIC Closes Seven Banks
On Friday, July 23, 2010, the Federal Deposit Insurance Corporation (FDIC) shuttered seven more banks (each in a different state), at an estimated cost of $431 million to the FDIC Depositors Insurance Fund.
These seven closures push the total number of failures this year past the 100 mark to 103. This is not the best milestone to surpass in mid-July – or ever, for that matter – and if this trend continues, we are on pace to eclipse the 140 bank failures we saw in 2009.
On the brighter side, the European stress tests, that were also released on Friday, beat expectations by finding that only seven out of the 91 banks tested need to raise capital. Also, the 3.5 billion euro that is needed to recapitalize these institutions came in lower than expected.
This week's closures bring the grand total of bank failures for 2010 up to 103, and 270 since the beginning of the credit crisis.
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For more information please see:
Home Valley Bank – Cave Junction, Oregon
SouthwestUSA Bank – Las Vegas, Nevada
Community Security Bank – New Prague, Minnesota
Thunder Bank – Sylvan Grove, Kansas
Williamsburg First National Bank – Kingstree, South Carolina
Crescent Bank and Trust Company – Jasper, Georgia
Sterling Bank – Lantana, Florida
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