Washington State has had more bank failures than any other state so far in 2009 with Rainier Pacific in Tacoma being the fourth bank in Washington shut down so far. Meanwhile, the overall bank failure rate nationwide continues to accelerate.
Agent Genius took a look at bank failures by state and also compiled a list of banks shut down so far in 2010. Here’s an excerpt:
In 2007, only 3 banks were on the FDIC’s bank failure list (aka the FDIC shut down their operations), in 2008 there were 25 banks closed, but 2009 ended with 130 banks failed! If that isn’t startling, note that by March 3 of 2009, 16 banks had closed, but as of today, 22 banks have closed in 2010, a 37.5% acceleration rate over 2009. If the current rate of bank failures continues, 2010 could see over 178 failed banks. – Agent Genius
To see which banks are in trouble, the best information I’ve found is at Banktracker. Banktracker tracks the troubled asset ratios of banks. Generally, if the troubled asset ratio is over 100, the bank is considered stressed.
To understand which deposits at a bank with FDIC insurance are covered, please visit the FDIC on the web.
FDIC insurance covers all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, money market deposit account (MMDA) or time deposit such as a certificate of deposit (CD).
FDIC insurance covers depositors’ accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through the date of the insured bank’s closing, up to the insurance limit.
The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank.
The FDIC does not insure safe deposit boxes or their contents.
The FDIC does not insure U.S. Treasury bills, bonds or notes, but these investments are backed by the full faith and credit of the United States government. – FDIC
There are limits to FDIC coverage and deposits over those limits may not be reimbursed by the FDIC. So, check your bank’s health and make sure that all of your bank deposits are insured! There will be fewer banks around this time next year!
