Friday Afternoon – Time To Shut Down Another Bank
In what is becoming a Friday routine, the FDIC shutdown another bank this afternoon/evening. This time it was the Beach First National Bank in South Carolina. Rising losses, primarily due to commercial real estate, has forced the FDIC’s hand.
140 banks failed in 2009 and so far in 2010, we’re up to 42 (on pace to break 2009’s numbers). It makes you wonder how sound our “recovery” is when banks are still failing in large numbers. Most will admit that the nation needs a healthy banking system in order to have a healthy economy. The large banks get free money from Uncle Sam, and the small banks are getting picked off one by one on Fridays. Yep, that’s what you call a healthy banking system!