92 Failed Banks in 2011

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According to the FDIC, ninety-two banks failed in 2011. Not a bad number considering a hundred and fifty seven banks failed in 2010 and one hundred and forty banks failed in 2009 (“only” twenty five failed in 2008). All in all, it’s nice to see the trend reversing. Most of the banks that failed were smaller community banks, unlike the blockbuster failures of Washington Mutual and IndyMac in 2008 (hence my quotations over “only”).

2011 also saw the failure of two internet banks – Lydian Bank, the parent of Virual Bank, and Nexity Bank, a bank I had never heard of. Internet banks have typically been safe from failure, with never a whisper of failure coming from the larger companies like ING Direct and Ally Bank. I still think that online banks are pretty safe from failure (which means you’d be spared from headaches as FDIC insurance covers you quite a bit) and are tough to beat when coupled with higher interest rates.

If you like some trivia, Georgia saw the most failures (23) with Florida coming in second (13). It flipped from 2010 when Florida had 29 and Georgia had 21. We’ll see who pulls ahead for good this year. 🙂

Here’s the full list from the FDIC in case you want to play around with it.

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5 Responses to “92 Failed Banks in 2011”

  1. lostAnnfound says:

    Just one in MA where I live. Still, I’m glad we have belonged to a credit union for over 20 years.

  2. Goodness, 7 banks failed in SC, my home state. Crazy! Even a few banks that I have dealt with in the past. Wow.

  3. freeby50 says:

    92 sounds like a lot but as of Sept 2011 there were 6,352 commercial banks. If 92 failed then thats about 1.5% failure rate.

  4. Strebkr says:

    Ohio had a good showing 🙁

  5. Ray says:

    I’m more interested in the net change in the number of banks. If there’s a significant number of new banks then it wouldn’t be as big of a deal.

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