Econchart Sbankfailures092009
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The FDIC's insurance fund balances are rapidly declining as bank failures increase, with forecasts of up to 800 more failures this year alone after 94 so far in 2009 compared to only 25 in all of 2008. Assets of problem banks now average $720 million each, exceeding the last crisis in the early 1990s, though that crisis did involve nearly double the total number of troubled institutions that have emerged so far in the current situation.
Econchart Sbankfailures092009
- 1. How bad are the current bank failures ?The FDIC?s Insurance Fund Balances are rapidly deteriorating – The agency may soon ask banks to lend to their own fund or tap into a $100 billion credit line with the Treasury In USD Billion - Source: FDICThe bad news - forecasts are for up to 800 more bank failures; 94 so far this year, up from 25 for all of 2008 50FDIC Insurance Fund BalanceAverage assets per problem bank now $720 million, exceeding last crisis in early 90s ($590 million) 4030The good news - Last banking crisis saw nearly double the amount of problem institutions20101985 to 1992: 2,484 banks failed or were assisted by FDIC, with nearly twice as many banks as today 3Q 20071Q 20092Q 20094Q 20062Q 2008