By Stephen Grocer
October 19, 2009
The number of failed banks this year inch one closer to 100 Friday.
Regulators seized San Joaquin Bank, of Bakersfield, Calif., marking the 99th bank to fail this year and the 124th since 2008. San Joaquin Bank, which had $775 million in assets and five branches, was acquired by Citizens Business Bank of Ontario, Calif., in a government-brokered deal, according to the FDIC. The regulator said the failure is expected to cost the agency’s already-strained insurance fund approximately $103 million.
The deal marks only the fourth failure this month, a drop from the past three months. September, August, and July saw 11, 15 and 24 failures respectively.
Is the rate of bank failures slowing? Not yet, says FDIC chairman Sheila Bair. She told CNBC last week that she would need to see several more quarters of slowing failures before determining that the situation was improving. “Our projections are that bank failures will continue through 2010,” Bair said.
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