FDIC troubled bank list still lower than 1980s and early 1990s on 100 Mortgages

Back in May there was just 90 institutions that were on the FDIC troubled bank list, this number could grow when the latest readings are read in August, but they will still be lower than they were back in the 1980’s and early 1990’s.

Despite the recent collapse of IndyMac, analysts still maintain that the banking system is still in better shape than it was during the S&L crisis.

CNN Money has said that there won’t be nearly as many bank collapses as there were in the late 1980s and early 1990s. In 1989, 534 institutions failed, this was just before the peak of the savings & loan crisis. In that period over 1,000 institutions had shut up shop.

IndyMac is just the fifth bank to fail this year, so it shows that things are nothing like they were back in the 1980s and early 1990s.

However; one thing that we have to remember, the failure of IndyMac is the largest collapse of an FDIC-insured institution since 1984. The bank had assets of $40 billion and with the current Fannie Mae and Freddie Mac problems; this current period is set to be an expensive one.

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1 Comment
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IndyMac had $36 billion in assets… 2nd only to the $40 billion of Continental Illinois back in 1984. Just a small error. Your points are still valid.

Comment by whatmenthink — July 15, 2008 @ 1:02 am