So far in 2009 – 14 banks have failed , and have been taken over by the FDIC. These banks are much smaller than Citi or Bank of America, and the latest one to failÂ – Silver Falls Bank, Silverton, OR – had assets worth $131.4 million dollars.
The FDIC facilitated a purchase agreement with – Citizens Bank – who will take over the deposits of Silver Falls Bank and the depositors of Silver Falls will now bank with Citizens Bank.
The combined assets of all these failed banks amount to $6.87 billion dollars and the total losses because of these failures amount to $1.65 billion dollars.
So that means on an average, when a bank failed in 2009, the taxpayer incurred a loss of about 24% of the assets held with the bank.
Here is a list of all the 14 banks that failed in 2009 with their Assets and Cost to Federal Insurance Deposit.
It will be interesting to see what the estimated cost of solving the banking crisis eventually comes out at, but I hope it is lesser than 24% than the total assets of the major big banks in the country. But looking at these numbers I think all of us should brace ourselves to see a price tag that stretches to a – T, not a – B.