Bank Failures: Impact on FDIC Insurance Fund and Banking Landscape

This Financial Insights Perspective discusses the following information:

• 52 FDIC institutions have failed so far in 2009.
• In 1Q09, the cost to the FDIC Deposit Insurance Fund was $2.2 billion.
• In 2Q09, the cost estimated to the FDIC Deposit Insurance Fund will be close to $9 billion.
• Bank failures continue to mount; consumer and commercial loan delinquencies pick up as unemployment maintains historically high.
• Surviving banks will need to pick up the slack.