The FDIC shut down 5 more banks on Friday. First Regional Bank of LA, First National Bank of Georgia, Community Bank & Trust , Florida Community Bank, Marshall Bank, and American Marine Bank were all closed by the FDIC.
Since January of 2008, 155 banks have been shut down and there are more to come. One hundred and forty failed in 2008 and 15 so far this year. This may seem like a lot but it really isn’t that big a number compared to the 534 banks that failed in 1989. This just highlights that the financial crisis is not yet over for many small and midsized banks. Foreclosures and loan defaults are crippling the balance sheet of smaller banks and they are unable to find adequate capital to stay afloat.