Second FDIC Bank Failure of 2008
January 28, 2008
No real reason for alarm but three weeks into 2008 and we already have two FDIC-insured banks which have failed and been placed in receivership by the FDIC. Douglass National Bank joins Miami Valley Bank as the two bank casualties. The last few years have been very quiet for the FDIC as shown below:
2004 FDIC Bank Failures (4)
2005 FDIC Bank Failures (0)
2006 FDIC Bank Failures (0)
2007 FDIC Bank Failures (3)
Of those failures the only major bank to bank was NetBank, a high-profile online bank whose deposits were assumed by ING Direct, however banking experts are predicting at least five more bank failures this year with at least one more major bank failure. As always the best advice is to maintain strict diligence in keeping deposits below $100,000 per single depositor and open and maintain at least one contigency checking account for liquidity purposes. Online banking customers who would like to keep use various banking resources and rating services to monitor the health of their bank can refer to the money-rates.com Bank Ratings page for updated information.
