With four closings today, totaling 8 in October, the FDIC closed bank list broke 100 to reach 103 for the year.
Today there were 3 Florida banks and 1 Georgia bank. The ramifications are many.|
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You Tube video from FDIC Chairman Shelia Bair, |
At present the FDIC fund is stretched.
The loss of local banks always has adverse local impact. Of course these banks are not lost, only sold. And most depositors are protected.
The local bank though becomes part of a larger bank.
The worst news is that some projections look to as many a 400 more bank closings can be expected over the next few years, costing as much as $100 billion.
The recovery may be underway, propped up by massive federal spending and tax credit.
Unemployment, commercial real estate, closed businesses and lost industries, have not yet finished taking their toll.
I hate to end the week on a negative.
Congress and regulators are looking at changes to improve the capital structure of the financial markets and institutions. Federal Reserve Chairman Ben Bernanke called today for quick Congressional action to finalize new legislation for capital requirements and to improve regulation and supervisory enforcement.
We have a ways to go.
Update: 3 more banks, in WI, MN, and IL, were closed yesterday after I wrote this post. Total now 106, and counting.
Richard- Interesting. It's not over and that is OK. We will get through this. Thanks for the update. So more small banks will fail because perhaps they may not be able to come up with an additional 3 years of insurance premiums ahead of time. Hmmm, she says they have a credit line with the treasury department and they never have to use tax payers money. My question is, where does the treasury department get their money from? Or is it just print on demand. Katerina
In short, we cannot run out of money....isn't that good to know.
Linda Metallo, Re/max Impact, Lockport, Il.
Hello Richard. An excellent report. The long term for home ownership , though fallen back to levels of several years ago, there are many more investors today. The next trend in real estate will not be the short sale and REO though they will be a part of the landscape for many years to come. The next trend will be working with investors in moving around their assets. As the market improves, there will be a much larger percent of sellers ( investors )that sell for a gain. Many of the investors ( or at least a large number) are expected to control the next phase of real estate sales as they exchange the REO's and now the short sales they are acquiring. REALTORS would be well served to get ready by honing their skills to work with investors on exchanges while we continue sell the distressed market over the next few years.