Tuesday, August 02, 2011
Bank of Choice turned out to be a bad choice
The effects of the 2008 bad-mortgage crisis continue to ripple their way through the banking industry, with failures this year in two states alone costing taxpayers $2.5 billion.
In Georgia, 16 banks have been rescued by the Federal Deposit Insurance Corp. (FDIC), at a cost of $1.5 billion. Georgia leads the nation with 67 failures since mid-2008. And 10 more may collapse before the end of 2011.
The FDIC has seized five banks so far this year in Colorado. Those takeovers have cost $1 billion, surpassing the expense in 2010 of three failures that drained $970.6 million from the FDIC fund.
Nationwide, the FDIC has forked over $5 billion on belly-up banks this year.
-Noel Brinkerhoff
Colorado Bank Failures This Year Could Cost the FDIC $1 Billion (by Aldo Svaldi, Denver Post)
FDIC Closes Two Georgia Banks (by J. Scott Trubey, Atlanta Journal-Constitution)
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