2010 Witness to Worst Bank Failure Since 1992
By John Boone
Published: December 29, 2010
After watching “It’s a Wonderful Life,” that Capra classic that gets us every time, we are reminded of the bygone runs on banks and savings-and-loan crises. The worst one in recent memory was actually fairly recent, in 1992 to be exact. That is, until 2010.
According the the FDIC, via the Washington Post, this is bad news, but it’s old news. We’re all acquainted with the uxorious economic dilemma in which we find ourselves, and the FDIC expects to have more than enough money to deal with bank failures for the coming years. 2010, claims the FDIC, was the “high-water mark” for bank failures.
“Going forward, the FDIC looks to see fewer failures,” agency spokesman Greg Hernandez said.
“I think we’re over the hump of the problem but far from the end,” banking consultant Bert Ely said.
Gary B. Townsend, president of Hill-Townsend Capital, said the industry is not just out of the woods, “we are far beyond the woods.”
Sometimes overconfidence can be reassuring.
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