With 77 banks now seized by the FDIC, the institutions deposit-insurance fund are getting hit hard by the failures. Compared to the savings-&-loan crisis, banks at present in a worse shape – being bigger in terms of asset size and also existing in a bigger economy.
From a WSJ report:
At three of the five banks that failed Friday, increasing the total to 77 so far this year, the financial hit to the agency’s deposit-insurance fund is expected by the Federal Deposit Insurance Corp. to be about 50% of their assets.
For the 102 banks that have collapsed in the past two years, the FDIC’s estimated cost averaged 25% of assets. That is up from the 19% rate between 1989 and 1995, when 747 financial institutions were closed by regulators, according to the FDIC.
This report also follows news over the weekend that Colonial BancGroup, this year’s biggest bank failure, will now be taken over by BB&T. Having said that, it would only cost FDIC 11% of its fund.