Seven U.S. Banks Are Seized, Raising Year’s Failure Toll to 140

Dec. 19 (Bloomberg) -- By Dan Reichl

Seven U.S. banks were seized: by regulators, bringing this year’s total of failed lenders to 140 as financial companies are tested by the recession and the Federal Deposit Insurance Corp. anticipates more shutdowns.


The budget: “will ensure that we are prepared to handle an ever-larger number of bank failures next year, if that becomes necessary,” FDIC Chairman Sheila Bair said in a statement. Yesterday’s bank closings will cost the agency about $1.8 billion, according to the FDIC statements.

U.S. lenders are buckling: under the weight of loans tied to commercial real estate, which is plummeting in value. Prices have dropped 43 percent from their peak in October 2007, Moody’s Investors Service said last month.


Comments:
It could have been worse for 2009. Clearly we still have more pain in front of us for 2010.