The FDIC reports 19 bank failures, but it’s really 16
According to the Federal Deposit Insurance Corporation’s (FDIC) Failed Bank List, 19 banks have failed since the beginning of 2008; 32% of the bank failures occurred in October and November alone. However, this is a macro-economics blog (mostly), and macro-economics is the study of an economy as a whole, right? So as the Federal Reserve is approving applications for financial institutions to become bank holding companies, the net-bank failure list is shorter.
Actually, the Fed’s tendency to make financial companies bank holding companies may significantly offset the growing number of bank failures. Here is the FDIC’s failed bank list on November 13, 2008:
Originally published on November 14, 2008 at News N Economics and reproduced here with the author’s permission.
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