Regulators on Friday closed 9 banks in California, Illinois, Texas and Arizona, boosting the number of failed U.S. banks this year to 115.
Nine is the most in one day that the FDIC has shut since the financial crisis began taking down banks last year. The 115 total failures are the most in a year since 1992 at the height of the savings-and-loan crisis.
The FDIC expects Friday's closings will cost $2.5 billion. To replenish their fund, the FDIC wants the roughly 8,100 insured banks and savings institutions to pay premiums in advance that would have been due over the next three years.
Hundreds more bank failures are expected to raise the cost to around $100 billion through 2013. Last July, FDIC Chairman Sheila Bair predicted that the bank failure rate will increase tenfold.
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Nov. 6 update: Regulators today shut banks in Georgia, Michigan, Minnesota, Missouri, and California, bringing the number of bank failures this year to 120.
Nov. 13 update: Regulators today shut down two banks in Florida and one in California, boosting to 123 the number of U.S. bank failures this year.
Nov. 25 update: The 124th bank failure recorded this year, but fears persist that the number will multiply in months ahead because banks are still taking losses on mortgage-related loans and face growing problems with commercial real estate.
552 lenders are still at risk of going under, according to a government report published yesterday. The FDIC's problem list has climbed to its highest level since 1993.
December 7 update: After a brief holiday respite, bank failures came back with a vengeance this week. The FDIC and its fellow regulators closed 6 institutions, bringing the total to 130 for the year. These latest bank failures will cost the FDIC’s deposit fund an estimated $2.38 billion.
Dec. 12 update: Regulators have shut down banks in Florida, Arizona and Kansas, bringing to 133 the number of U.S. banks that have failed to hold up this year against the struggling economy and a cascade of loan defaults.
December 18 update: Regulators shut down banks in Alabama, Florida, Georgia, Illinois and Michigan, bringing to 138 the number of U.S. banks brought down this year by the weak economy and mounting loan defaults.
January 8, 2010 - Regulators shut Horizon Bank in Bellingham, Wash., on Friday, the first bank closing of 2010.
The 140 bank failures last year were the highest annual tally since 1992 at the height of the savings and loan crisis. They cost the insurance fund more than $30 billion last year. The failures compare with 25 in 2008 and three in 2007.
Jan 23, 2010 - Regulators seized five banks in Florida, Missouri, New Mexico, Oregon and Washington, lifting the total number of failures this year to nine as financial institutions struggle with loan defaults and a weak economy.
January 2012 - For a year-by-year summary:
In 2011, 92 banks went under.
In 2010, 157 banks went under.
In 2009, 140 banks went under.
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