The banking industry in US continues to be in turmoil, with five more banks getting closed down this week. That takes the 2009 total to 45 banks, which is over 150% of 2008 full year total. While in most of the cases , the depositors monies were guaranteed, and hence there was no run on deposits, there seems to be some unsecured deposits in one of the five banks closed this week.
The FDIC is looking into the details of the depositors of this failed bank, and is most likely to sort out the issue in another weeks’ time. At this rate, we can expect the total bank closures to go past half century in the next few weeks time. Not a good record to talk about.