One Month In, 11 Banks Down

Friday is typically the day the FDIC acts to close failing banks, and last Friday was the final Friday of the first month of 2011. We thought it timely today, therefore, to see what’s what so far this year.

Well, First Community Bank of Taos, New Mexico, was closed on Friday, along with three others. That makes 11 failed banks for the year, as we move into February.
 
The First Community closing is expected by the FDIC to result in a cost to the Deposit Insurance Fund of $260 million – the largest hit of the day. But not quite the $312.8 million resulting from the January 31, 2011, closing of United Western Bank of Denver, which is the largest estimated cost of any of the 11 banks closed to date this year.