Another Friday, another round but instead of happy hour, we have bank failures. These week's lucky winners, with their costs to the FDIC deposit insurance fund, are:
- Wakulla Bank, Crawfordville, Florida, $113.4 millio
- Shoreline Bank, Shoreline, Washington, $41.4 million
Yes, it's October 1, the end of TARP and we have over 120 deadbeat banks, not paying TARP dividends.
One hundred and twenty seven TARP recipient banks have missed dividends or have failed by the time of the August 2010 dividend. There were only 707 banks in the TARP program that received capital injections. Thus, greater than one in six missed their dividends or interest in August 2010. These banks receive $6.939 billion in taxpayer bailout monies.
Now check out this Zacks report, basically saying any bank on the problem list is a dead bank walkin'. Lovely.
In the second quarter of 2010, the number of banks on the FDIC's list of problem institutions grew to 829 from 775 in the previous quarter and 416 in the year-ago quarter. This is the highest since the savings and loan crisis in the early 1990s.
Banks that feature on the problem list are most likely to fail, though some may still scrape through. As of now, only about 13% of banks on the FDIC's problem list have actually failed. What is interesting is that this percentage is likely to change; though the problem list is growing at a slower pace, bank failures are accelerating.