This year recorded the highest number of bank failures since 1992, according to figures released by the Federal Deposit Insurance Corp. (FDIC).
As 2010 comes to a close, the nation saw 157 banks fail over the past 12 months, up from 140 in 2009. Furthermore, 860 institutions were on the FDIC's ‘problem’ banks list as of Sept. 30, the highest number since 1993.
The FDIC insurance fund is operating in the red as a result of the bank failures, but the agency states that it will be able to meet the cost of more bank failures through 2014. An FDIC spokesperson told the Washington Post, ‘Going forward, the FDIC looks to see fewer failures.’
Roughly half of all failed banks were headquartered in California, Florida, Georgia and Illinois. The total assets for the failed banks are $92.1 billion, a 45.7% drop from 2009's total of $169.7 billion in failed bank assets.
The last year without bank failures, according to the FDIC, was 2006.
SOURCES: FDIC, Washington Post