Busted: Bankers and The Global Economy

February 20, 2010

20 US banks collapse in 2010 so far

Filed under: banking, economy — Tags: , , , , , , — digitaleconomy @ 11:07 am

In less than two months, 20 American banks have been closed by the FDIC. A staggering 174 U.S. banks have hit the skids since the collapse of Wall Street giant Lehman Brothers in September 2008, which has sparked one of the worst financial crises in modern times.

What is to blame? A high unemployment rate has resulted through increased defaults at small and medium size community banks.

July 3, 2009

U.S. Banks, Economy Continue Up in Smoke

Filed under: banking, economy, money — Tags: , , , , , , , , , , , , , — digitaleconomy @ 10:28 am

economic fire sale

economic fire sale

Even though this website hasn’t been dwelling on bank closures lately, the number of bank closures is definitely on the increase. In anticipation of the holiday weekend, seven U.S. banks have been closed, bringing the total of banks closed this year to 52.

What has made the closures this week unique is that many of the banks have been financially interlinked, which has exposed them to closure because of CDOs and loan losses. Local banks, not too large to fail, have been hit especially hard during the economic crisis, as a drop in home values has devalued mortgage-backed assets. The rising unemployment numbers have also impacted the banks, as more consumers are defaulting on their loans.

What really highlights the current economic crisis to me was a visit to a large retailer yesterday. I spent an hour in the store and as I shopped, I heard all manner of phone conversations and scuttlebutt between employees about the economy, economic failure, job losses and financial family crises. This snapshot in time on a Thursday afternoon would seem to indicate that the nation is enduring some uncommon suffering as you read this commentary. While I was shopping, I wasn’t looking for what I discovered. The conversations, many of them quite loud, were impossible to ignore. ~ E. Manning

Blog at WordPress.com.