Friday, November 14, 2008

The FDIC reports 19 bank failures, but it's really 16

According to the Federal Deposit Insurance Corporation’s (FDIC) Failed Bank List, 19 banks have failed since the beginning of 2008; 32% of the bank failures occurred in October and November alone. However, this is a macro-economics blog (mostly), and macro-economics is the study of an economy as a whole, right? So as the Federal Reserve is approving applications for financial institutions to become bank holding companies, the net-bank failure list is shorter.

Actually, the Fed’s tendency to make financial companies bank holding companies may significantly offset the growing number of bank failures. Here is the FDIC's failed bank list on November 13, 2008:

Here is the Fed's New Bank List (announcements here and here):

So you see, only 16 banks have failed. Here is the aggregate Net-failed bank list:

Rebecca Wilder

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