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US bank failures top 100 this year

central bankMore US banks have now failed this year than in any year since 1992. The number is expected to rise as banks continue to suffer from the bad loans that precipitated the financial crisis. Savers’ money is not in danger, as the FDIC, which is backed by the US government, insures deposits at failed banks for up to $250,000 per account.

Many of the banks that have failed have been small community banks, which were badly hit when loans to individuals and small businesses were not repaid after the onset of the crisis. These were primarily deposit-taking banks, rather than investment banks that deal in complicated derivative products.

But these investment banks have also been hit hard, with the most high profile victim being Lehman Brothers, which collapsed in September last year. Days later, another of Wall Street’s most famous banks, Merrill Lynch, was saved from collapse when it was bought out by Bank of America.

Source: GBC NEWS

  1. Rob
    October 27, 2009 at 12:39 pm

    The 106 bank failures for 2009 are the most failures since 1992. Banks are failing fastest in those states with highest unemployment.

    This website has graphs showing the bank failures by state and bank failures by month.

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