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Bank Failures have doubled in 2010

By KJ Mullins     Apr 12, 2010 in Business
While non-bank mortgage lenders have seen a big decline in failed companies, banks failures have increased in the first few months of 2010.
When First Regional Bank closed their doors this year with expected losses of $826 million followed by Community Bank and Trust, which the FDIC expects to lose $828 million, it was a sign of things to come.
More than twice the number of federally insured banks have failed during 2010 as compared to the same point in 2009. From January 1 through April 9, 55 mortgage-related closings have been tracked by MortgageDaily.com. At about the same point last year, 50 closings had been tracked.
Some of the most notable bank failures include Florida Community Bank, with projected losses at $353 million, Appalachian Community Bank, expected to lose $419 million for the FDIC, and Horizon Bank with the Deposit Insurance Fund costs are estimated at $539 million.
There is some good news coming from Mortgage Daily: non-bank mortgage operations seem to have evened out. In the first few months of 2009 those operations had 25 failures and a total of 69 for the full year. From January 1 to April 12, 2010, only seven non-bank mortgage companies have failed.
"We saw regulatory actions against U.S. financial institutions nearly double between the first-quarter 2009 and this year, suggesting the acceleration in bank failures is unlikely to abate," said MortgageDaily.com Founder and Publisher Sam Garcia. "However, a thawing of the market for mortgage-related assets could help move some institutions out of the 'troubled' category."
More about Bank fail, Non-bank mortgage, Fdic
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