Last year I predicted 100 bank failures in 2009 and was too optimistic.
The final count for the year is 140.
After closing seven banks in one day on December 18, the FDIC stopped for the year. Besides not wanting to look mean-spirited for closing a bank over Christmas, surely the staff are exhausted from so many bank closures.
The charts of bank failures for 2009 show record dollar losses, when adjusted for inflation.
I predict for 2010:
1. 100 bank failures
2. FDIC will need refinancing amid threats of pending bankruptcy (the Congress won’t let that happen)
3. FHA will need refinancing amid threats of pending bankruptcy (the Congress won’t let that happen)
Filed under: Banking, Economy, The Ongoing Financial Crisis Tagged: | bank banks failure bankruptcy FHA FDIC
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