US bank failures touch 106; highest since 1992
24 Oct 2009
The number of bank failures in the US this year has touched 106 after federal regulators shut down seven banks yesterday.
Bank failures have cost the Federal Deposit Insurance Corporation (FDIC) fund that insures deposits an estimated $25 billion this year.
The number is expected to rise as banks continue to suffer from the bad loans that precipitated the financial crisis.
However, the failures will not put account holders' money in danger, as the FDIC 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.
.webp)
