More troubling news for the economy: The Federal Deposit Insurance Corporation is staffing up in preparation for a rash of projected bank failures:
Gerard Cassidy, managing director of bank equity research at RBC Capital Markets, projects 150 bank failures over the next three years, with the highest concentration coming from states such as California and Florida where an overheated real estate market is in a fast freeze.
According to the AP, that’s a whole lot more than the usual six banks that go belly up in a good year, but perhaps not very surprising given how few Americans these days actually have any savings in their passbook accounts. Federal deposit insurance will hopefully prevent panicked depositors from making a run on the banks, but the image of banks closing up shop doesn’t inspire a whole lot of confidence in the future of the economy, regardless of how optimistic the president is about it.
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