If you're new here, you may want to subscribe to my RSS feed right now, before you forget, to get the latest posts. Thanks for visiting!

Bank failures have been a thing of the past in the U.S. Sure there has been the odd bank failure here and there but not a run like the Savings and Loan crisis of late 1980s when 206 banks closed their doors. While for many the S&L crisis is ancient history, just like a lot of history, it’s probably going to repeat itself as an extra special treat of the “credit crunch”.

Credit Crunch, it’s as if the banks had a better name for a banking crisis ready. It’s so much better than S&L Crisis.

Our Brit friends really screwed the pooch with their Northern Rock debacle and not only did the government have to lend £50 Billion ($100 Billion) to the bank to stop a run on the bank, but the Queen has now had to take over the bank to try to straighten out the banking failure.

Not only does the U.S. not want to see the same thing happen, the FDIC, the federal agency responsible for protecting depositors, is very professional and business like about taking care of these matters rather than letting them implode like Gordon Brown did in the U.K.

The FDIC already has 76 failing banks on their books and has an office pool going that the number will top 200 bank failures before all this bad credit news subsides.

Now if you are a depositor in a U.S. bank that might fail, there is no need to stand in line all night waiting for the bank to open to get your money out. The FDIC typically steps in and takes over the bank before the bitter end. It is important to know that their are limits on the amount of protection you have with money on deposit so you should review the guidelines to become familiar with them.

If you want to see which banks have already failed, take a look at the list of failed banks.

-----

If you enjoyed this post be sure to grab the RSS feed or get posts by email so you don't miss a bit of what's to come.

Steve

Related Posts