Bank Closures by year

[TWP]

Rather than make this an edit on another, longer thread.  I'll put this at the start of a new thread.

We (Clay and I) had been discussing the current year's (2015) set of bank closures.  Fortunately,
someone else had done the foot work and built a list of closures, compiled by the FDIC, by year.

This is posted on the SurvivalBlog by a contributor (G.H.) on Sunday 7/12/15 and I link to it here.

http://survivalblog.com/economics-and-investing-441/

You will see a spreadsheet format table with the yearly totals and a link to the FDIC document(s) on which it is based.

I see that there was a large number of closures starting in 2008 and lasting to about 2012.  I attribute that to the "2008 crash" of the markets and the after effects.

In the last 2.5 years (2013 - mid 2015), the number of recorded failures has declined, but is still uncomfortably high (In my opinion).  Why it should be declining is a matter for debate...

Personally, in my opinion, not based on known facts (ok, you get the idea?) I assume that two things are happening.

1)  That the banking system is "looking out for itself" and protecting banks that may otherwise fail.

2)  That the manner in which banks are protected is by acquisition and merger, thus preventing otherwise failed banks from appearing on the list of failures.

In either case, the loss is borne by the account holders and not the shareholders and certainly not by the bank administration.

These are good reasons to avoid placing your money in the control of banks.

This chart, in my opinion, shows that we are not out of danger, but rather that the paddlers of this canoe are working as hard as they can to hold their position... on the brink of the waterfall. 

Meanwhile, everyone is trying to protect their wealth before a crash.  Look at the investment by whole countries in commodities (ie. Gold and Silver, Real Estate).

I hope I don't appear to paint too bleak a picture, but from my view, it does not look good and I want people to see what is happening.

[Jerry D Young]

Thanks TWP. I had a general idea of the closures. This confirms it nicely.

TPTB seemed to have learned how to hide the failures much better than they used to. And keep it out of the media.

If you have to have any real sum of money in a bank, put it in at least two different ones. A national, and a local. Make the second one a credit union, if possible, or as a third establishment. From past personal experience, and reading more recent accounts, even though the FDIC does pay off up to their stated limits, it can be weeks or months before you get the money. Always have that second account somewhere else, and some cash at hand, too. A few liquid assets does not hurt, either.

Just my jaded opinion.