Are Bank Failures on the Rise?

Another bank just bit the dust. Nevada based Silver State Bank was closed down by Nevada regulators due to bad loans. The Federal Deposit Insurance Corporation [FDIC] was named as receiver. Andrew K. McCain, son of Republican presidential candidate John McCain, was on the bank's Board of Directors until July.

According to the FDIC, this is the seventh bank failure for the third quarter, an increase of 250% over the second quarter, and the quarter isn't even over yet.

 

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Comments

[Tim Plaehn:]

Yes, going from 3 to 7 is almost a 250% increase, it is also only 4 more so far this quarter and 0.0008 of all of the FDIC insured banks.

Compare these numbers to the 120+ banks taken over per year during the S&L crisis.

2008 Sep 08 08:25 AM