Tuesday, June 1, 2010

May 2010: 14 Banks Fail

May 2010 Summary

In May 2010, 14 US banking institutions failed with a total of nearly $6.2 Billion in combined assets. The FDIC entered into loss-share transactions (an FDIC arrangement with acquiring bank for FDIC to assume a share of future loan losses) in 11 of the failures covering a total of $4.5 Billion of failed bank assets or 72% of the May failed asset balance. The May cost to the Deposit Insurance Fund ("DIF") was $838 Million.

In the first five months of 2010 there have been 78 bank failures totaling $68 Billion in assets with $47 Billion in Loss Sharing Agreements costing the FDIC Fund $16.8 Billion. Cumulative Loss Sharing Agreements entered into with acquiring banks since the 2009 reintroduction of this early 90's ‘resolution vehicle’ now total nearly $170 Billion in asset volume.