Year End Bank Failure Summary for 2011

Now that 2011 is behind us, here's a quick summary for last years bank failures.

2011 started with the continuation of a lull in bank failures and FDIC DIF (deposit insurance fund) cost. That lull was a well defined monthly pattern which had started May of 2010. The pattern ran for a total of seventeen months and broke last October. It was pretty impressive, all things considered. Also worth mentioning was the decline in the number of banks closed by the FDIC last year. There were a total of 92 bank failures.

Since last October, the FDIC DIF cost and bank failure numbers have plummeted. We have just experienced a six week period, with only two bank failures. Five out of the last six weeks had no bank failures. That has not happened since 2008.

During 2008 – 2010 we witnessed billion and multi billion dollar FDIC DIF cost bank failures. None this past year… zero. This is just my opinion, it appears that the too big to fail bar has been greatly lowered.

The largest bank failure of 2011 was:

1/21/2011 *** CO *** Denver ***United Western Bank, with an estimated $312.8 million dollars in FDIC DIF cost.

What do these low numbers mean? Only heaven and the PTB know that answer. After doing my charts for 3 years I have learned that we are just along for the ride. A ride where it is wise to remain seated, and to keep your arms and head with in the vehicle at all times.

Have a HAPPY NEW YEAR.

Keep track of 2012′s bank failures by clicking on the link in the upper right hand corner in the Economics Charts, Data, and Links section.

And now for the charts:

UPDATED THROUGH December 31, 2011 CLOSINGS (click to enlarge/reduce thumbnails):