It's just another day in the US system with another bank being shut down. And there are plenty more to come. On Friday, we had reports that a small one branch bank in Minessota became the 73rd US bank to close this year. That's already more than half way to last year's closure rate of 140 banks. Since the beginning of 2008, a total of 237 US banks have shut their doors. You can check out the failed bank list here.
The big issue is how many more to come. The Wall Street Journal reports that the Federal Deposit Insurance Corp (FDIC) has listed 775 banks as "problem" institutions. That's about one in 10 US banks. The FDIC says it expects the number of closures to peak this year. That means more volatility, bad loans and even less money available for credit.
No surprises then that commentators are warning of another meltdown in the second half of 2010. Watch out for more people investing in commodities and metals. With the rate of bank closures increasing, many Americans might start keeping their money safe at home.
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