Given the recent COLLAPSE of California-based IndyMac Bank (IMB...or the artist formerly known as IMB), the 11th Largest U.S. Residential Mortgage Originator in 2007, I thought it'd be useful to gain some historical perspective on U.S. Bank Failures via reviewing some of the Bank Failure Statistics related to the Early 1980's and 90's U.S. Savings & Loans Crisis :* The U.S. Savings and Loan crisis of the 1980s and 1990s directly resulted in the failure of a total of 747 savings and loan associations (S&L's)...While not officially part of the Savings and Loan Crisis, many other banks failed. Between 1980 and 1994 more than 1,600 banks insured by the Federal Deposit Insurance Corporation (FDIC) were closed or received FDIC financial assistance
* The ultimate cost of the crisis is estimated to have totaled around $160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government (that is, the U.S. taxpayer, either directly or through charges on their savings and loan accounts)
* L. William Seidman, former chairman of both the FDIC and the Resolution Trust Corporation, stated, "The banking problems of the '80s and '90s came primarily, but not exclusively, from unsound real estate lending."...The marketshare of S&L institutions for single family mortgage loans went from 53% in 1975 to 30% in 1990
* Between 1986 and 1991, the number of new homes constructed per year dropped from 1.8 million to 1 million, the lowest rate since World War 2
* During the Savings and Loan Crisis, from 1986 to 1995, the number of US federally insured savings and loans institutions in the United States declined from 3,234 to 1,645 (a 49% DROP in S&L institutions)
http://en.wikipedia.org/wiki/Savings_and_Loan_Crisis
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Somewhat Related + According to Brown Brothers Harriman Chief of Foreign Exchange Strategist, Marc Chandler:
* The U.S. experienced 500 bank failures in 1989
* The NY Times reported today (7/14/08) that roughly 150 out of the some 7,500 US banks may fail in the next 18 months...Year To Date only 5 U.S. banks have failed (between 2005 and 2007, only 3 banks failed)
* At the end of 1Q08, the FDIC had 90 banks on its problem list (in danger of failure), up from 76 at the end of 4Q07 and 63 at the end of 3Q07
Data Courtesy: Wikipedia, The AP, NY Times + RealMoney.com
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