Failed Bank List Exposed

The headlines read: Wall Street in recovery. U.S. Stocks Rise as JPMorgan’s Profit Helps Dow Exceed 10,000 (Bloomberg). Is the recovery of Wall Street breaking the rest of America? You decide.

The FDIC is a government owned corporation (created 1933) that guarantees the safety of deposits in its member banks. Currently, the amount per depositor per bank is $250,000. On Jan. 1, 2014, this amount returns to $100,000.

In 2005 and 2006 there were no bank failures reported by the FDIC. In 2007, there were only three. In 2008, there were 25 banks that failed. In 2009, that list has grown to 105, and still counting.

Here’s a list (FDIC) of banks that have failed since October 1, 2000.

Examine a list of the largest U.S. bank failures. Out of the 36 banks that failed, 25 of them failed in 2008 and 2009. The financial storm is not over yet.

To further add fuel to the fire, controversy surrounds the seizure of assets by giant banks. Washington Mutual was taken over and sold to JPMorgan Chase at a discount price. This has prompted questions from the shareholders.

And the number of troubled banks (MarketWatch) keeps growing. The number of financially troubled banks is 416, and rising.

And if this news is not depressing enough, FDIC funds are rapidly disappearing. At the end of 2007, the balance was $52.4 billion. In June of 2008, that amount had decreased to $45.2 billion. In March of 2009, funds dropped to $13 billion.

In August of 2009, the DIF (Deposit Insurance Fund) balance was reported to be only $648.1 million, and shrinking. And now, there are reports (Bloomberg) that the FDIC is broke. This could mean more taxes on Americans.

Is your bank at risk of failure?