Bank Failures

I’m guessing most people think that banks in the US never just fail. But that’s what the FDIC is for, to make sure regular people don’t get screwed when they do fail.

And they do.

In the bad recession years (meaning a few years ago) several hundred banks failed each year. This year we are on pace to be the best year since 2007 (when only 3 failed).

One of the blogs I follow lists every bank failure they know about. Just to make a point.

So, Aztec America bank in Berwyn, IL failed. It will likely cost the FDIC fund $18 million. No consumers felt any impact as another bank assumed the deposits (the FDIC picking up the cost).

Big government is bad, except when it’s not…