In 2009, the FDIC closed a total of 140 banks

It’s just one month into 2010, and the FDIC has already seized 12 banks – the ultimate and embarrassing result of insolvency. Multiply that out by 12, and it would appear, on the surface, that the FDIC is on track to close about 144 banks this year.


In 2009, the FDIC closed a total of 140 banks. With the second wave of subprime and Alt-A mortgages set to hit in the later half of 2010, I’d expect a ramp-up in the number of banks that need to be seized…and my colleagues are expecting something much more sinister might be underway…

Already, I’ve compiled a list of the top 108 banks likely to fail this year. What makes them likely? They’ve all got Texas Ratios above 100. It sounds scary, but you won’t truly be frightened until you understand exactly what that means…