Oct 052009
The rate of bank failures is increasing and probably will continue to do so. The primary reason to expect failures to increase pertains to the cash-strapped FDIC. Evidence that they are closing banks too slowly is apparent from the losses incurred. Additional reasons may be political pressures, lack of manpower to physically handle more than a few banks at a time and a continuing deterioration in the asset base of the banking system. Rolf Winkler provides a summary of closing history.
