Federal Deposit Insurance Corp. (FDIC) regulators have closed four more banks bringing the total number of bank failures nationwide in 2011 to 84.  In closing down and selling off these banks on Friday, the FDIC’s Deposit Insurance Fund paid out $358 million to enable the transactions to take place;  additional losses will be borne by the failed banks’ new owners.  Through 2010 the FDIC has paid out $76 billion, and the total is likely to exceed $100 billion by the end of this year.

C-I Note: Sort of brings a sense of relief to many of our members and guests knowing that you're employed by, or working in some capacity for, a broker-dealer - the relatively safe and secure side of financial services.  Well, almost.

All seriousness aside, since 2008, 406 U.S. banks have collapsed.  The highest number of bank failures occurred in 2010, when 157 banks closed their doors.  During that period, the worst hit states were:  73 bank closures in Georgia;  Florida, with 54 bank failures;  and, Illinois, with 45. 2011 Failures. Last week's closures involved one bank in Colorado, one in Florida, and two in Georgia.   The biggest hit to the FDIC was from Community Banks of Colorado.  With approximately $1.38 billion in total assets and $1.33 billion in total deposits, the estimated cost to the Deposit Insurance Fund will be $225 million.  By comparison, the other three institutions, combined, will likely cost the fund about $134 million. Not yet closed, but classified as "troubled," are 865 more banks, according to an FDIC quarterly report dated 6/30/11.  That number is actually a drop from April 2011, when the number stood at 888.  In fact, this was the first quarterly decline in almost 5 years. And, in case you're wondering, "troubled" banks account for about 11% of all U.S. banks.  Thank goodness for FDIC insurance coverage.  And for SIPC, which backs up broker-dealers.   [CNBC.com, 10/25/11]