Failed Banks Absorbed by FDIC
By Barry Ritholtz - August 24th, 2009, 12:30PM
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Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
August 24th, 2009 at 12:50 pm
300 more to go in the next year. Fed response will be to print money. This will end well.
http://theburningplatform.com/economy/the-federal-reserve-must-die-1
August 24th, 2009 at 12:51 pm
Nice chart. Scary.
It would be interesting to see a similar chart tracking total FDIC cost.
From this chart and what little I recall, seems the failures are becoming more expensive.
The cycle continues.
More banks fail. FDIC premiums escalate, forcing more banks to fail.
While the TBTF BananAmerica banks flourish trading on the volatility.
August 24th, 2009 at 12:56 pm
As the water temperature slowly rises, the frog doesn’t even notice.
August 24th, 2009 at 12:59 pm
In recent post, Mish is arguing that the FDIC fund is already out of money.
http://globaleconomicanalysis.blogspot.com/2009/08/as-of-friday-august-14-2009-fdic-is.html
Of course, the FDIC can tap its line of credit with the Treasury (sounds like a good idea) or there could be more printing I guess. I’d be nervous as a depositor, doubly so given the massive discrepancies banks are reporting in loan carrying values and fair values.
August 24th, 2009 at 1:06 pm
Ribit.
August 24th, 2009 at 1:22 pm
It would be interesting to see a cumulative graph, with each failure weighted by the size of the bank.
August 24th, 2009 at 1:37 pm
Not just a few more banks going belly up—but Guaranty Bank was the 3rd largest of 2009 and 11th largest…of all time.
August 24th, 2009 at 1:46 pm
The notion of an arbitrary dividing line between too big to fail (the 19) and everyone else just gobsmacks me between the eyes when I think about it. Was there a manual somewhere that said “these nineteen financial institutions can not be allowed to fail. The hell with the rest.”
But don’t worry about the FDIC being broke. That would only matter in the case of an internecine struggle about which government agency gets to dole out the freshly-minted greenbacks to save the TBTF’ers or to insure the depositors of the others. Sheila Bair, though, better watch her back. She’s not real popular with Tiny Tim and the monetary monkeys at the Fed.
This is going to be a long, slow boil.
August 24th, 2009 at 1:54 pm
Actually, the TBTF do not number 19.
That was a smoke screen.
The real TBTF, in order of importance are: GS, JPM, C, BAC, WFC. Any others?
I only count five, which makes the situation even more like Simon Johnson’s BananAmerica.
August 24th, 2009 at 1:55 pm
Speaking of banks, that’s a pretty big reversal in the BKX… stay tuned
August 24th, 2009 at 1:57 pm
I would maybe add MS to the list
August 24th, 2009 at 1:57 pm
@alfred e.
But you left off GMAC. They’ve only pumped about $20 billion into it, I suppose so it can finance all the new Toyotas and Hondas people bought with their clunker cash.
August 24th, 2009 at 2:01 pm
ot-
Bernie Madoff dying of cancer-
http://finance.yahoo.com/news/Madoff-dying-of-cancer-fellow-rb-1936732826.html?x=0&sec=topStories&pos=2&asset=&ccode=
this dude may be more sinister than we knew- i wonder if he was diagnosed w/ pancreatic cancer before he turned himself in-
so in his mind- give him a million years in jail he knows he won’t last but a few years- afther he spent his healthy years living large swindling the general public who bought into his “consistent returns” charade-
devious
August 24th, 2009 at 2:07 pm
alfred e-
the following is the list of banks/fianancial institutions that underwent the stree test- presumably these are the one’s that are TBTF
J.P. Morgan Chase & Co.
Citigroup
Bank of America Corp.
Wells Fargo & Co.
Goldman Sachs Group
Morgan Stanley
MetLife
PNC Financial Services Group
US Bancorp
Bank of NY Mellon Corp.
SunTrust Banks Inc.
State Street Corp.
Capital One Financial Corp.
BB&T Corp.
Regions Financial Corp.
American Express Co.
Fifth Third Bancorp
Keycorp
GMAC LLC
August 24th, 2009 at 2:30 pm
GE probably also TBTF.
August 24th, 2009 at 3:05 pm
i wonder if any one has tracked how much of the total deposits the failed banks have had. i remember hearing that the the 19 largest banks have close to 70 or was 85% of all deposits in the US and the terror was that if they failed it would much worse than the GD when 4000+ banks failed. what i don’t understand is how we let them get that way and why they aren’t regulated like utilities (ok not ones in Texas. but else where?) since if one of these banksters fails, they take a lot of them with them
August 24th, 2009 at 3:20 pm
$36.7 billion in total deposit insurance payouts since 2008? She-yoot! That ain’t nothin’. You couldn’t get Citi’s executive corps out of bed for less than half a trillion dollars in government money. You know what they say: “In for a pound, in for a penny.”
August 25th, 2009 at 10:45 am
So many fanks failing each Friday and we are expecting many more in next few years.
PortalSeven is tracking all the bank failures since 2008.
It details the bank failure data like assets, deposits, cost to Deposit Insurance Fund(DIF), who is acquiring the failed bank, how much premium is paid to assume the deposits of failed bank, loss-sharing aggrement between the FDIC and acquiring bank.
Check at :
http://portalseven.com/Failed-Banks-2009
AND
http://portalseven.com/finance/Failed_Banks_Acquirer.jsp