2008–2011 bank failures in the United States
The late 2000s financial crisis led to the failure of a number of banks in the United States. Twenty-five banks failed and were taken over by the Federal Deposit Insurance Corporation (FDIC) in 2008, while 140 failed in 2009. In contrast, in the five years prior to 2008, only 11 banks had failed.
A bank failure is the closing of a bank by a federal or state banking regulatory agency. The FDIC is named as Receiver for a bank's assets when its capital levels are too low, or it cannot meet obligations the next day. After a bank's assets are placed into Receivership, the FDIC acts in two capacities—first, it pays insurance to the depositors, up to the deposit insurance limit, for assets not sold to another bank. Second, as the receiver of the failed bank, it assumes the task of selling and collecting the assets of the failed bank and settling its debts, including claims for deposits in excess of the insured limit. The FDIC insures up to $250,000 per depositor, per insured bank, as a result of the Emergency Economic Stabilization Act of 2008, which raised the limit from $100,000.
Early in 2008, the FDIC began hiring retirees from its division of resolutions and receiverships in anticipation of a string of bank failures. In late August, the FDIC reported that its list of 'problem banks' has risen to 117 banks, and it might have to ask the U.S. Treasury Department for more funds to cover an anticipated wave of new bank failures. On August 26, 2008, FDIC Chairman Bair said that she expects more banks to join the agency's watchlist, and said the FDIC is considering raising the premium banks pay for FDIC insurance, in order to replenish the dwindling $45.2 billion insurance fund. In early 2010, the FDIC announced that, despite the closure of banks in 2008 and 2009, over 700 banks remained at risk of failure in 2010.
The receivership of Washington Mutual Bank by federal regulators on September 26, 2008, was the largest bank failure in U.S. history. Regulators simultaneously brokered the sale of most of WaMu's assets to JPMorgan Chase, which planned to write down the value of Washington Mutual's loans at least $31 billion.
List of bank failures in 2008
Twenty-five banks failed in 2008 (26 including the Utah-based wholly owned subsidiary of Washington Mutual, which was covered under the same FDIC closure notice as its parent company):
Total Assets ($mil.) from bank failures in 2008: $373,578.
List of bank failures in 2009
The following 140 banks failed in 2009:
Total Assets ($mil.) from bank failures in 2009: $163,755.
List of bank failures in 2010
The following 157 banks have failed in 2010:
Total Assets ($mil.) from bank failures in 2010: $95,975.
List of bank failures in 2011
The following 40 banks have failed in 2011:
See also
Notes
External links
Retrieved from : http://en.wikipedia.org/wiki/2008%E2%80%932011_bank_failures_in_the_United_States
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