US bank failures top 100 for year

From the BBC, we note that 100 banks have failed this year so far, the highest number since 1992 in fact, Bank failures have cost the Federal Deposit Insurance Corporation (FDIC) fund that insures deposits an estimated $25bn this year

The FDIC is a fund that insures deposits at failed banks with a current limit of cover of USD$250,000 per account.

It notes that a large number of failures were in regional banks, where they could not respond to the crisis of failures at the onset of the crisis. The banks were largely deposit takers rather than Merchant banks, although it is now history that the crisis did expand to Lehman Brothers which collapsed and also serious issues for Merrill Lynch that was save from collapse by being bought by the Bank of America.

Here is the link:http://news.bbc.co.uk/2/hi/business/8323565.stm

Tags: US+Bank+Failures