- Miller Samuel Real Estate Appraisers & Consultants - http://ms.clash.outthinkgroup.com -

[14 and Counting] Banks Are Failing (To Lend)

I thought it was time to check back in with the pace of bank failures. The FDIC began publishing a list of bank failures [1] in October 2000:

The top 3 years with the most failures were:

The conventional wisdom that bank failures should be more of a concern [2] than other types of firms in a weakening economy may not be entirely correct.

However, correlate the failure rate with banks’ rise of excessive exposure to mortgage lending [3] and it makes sense.

After I did my chart, I came across a CNN/Money [4] story expressing the same concerns.

About 150-300 banks [5] are projected to fail during this recession. The last big surge of bank failures was in the late 1980s.