Over the past weekend the Federal Deposit Insurance Corporation (FDIC) shut down three more lenders – two in Florida and one in Colorado. This brings 2011’s tally of failed banks to 58[1]. Both Florida lenders were acquired by American Momentum Bank, while Bank Midwest used an FDIC-assisted transaction to acquire Colorado’s Bank of Choice. That transaction is projected to cost the FDIC $213.6 million[2]. Colorado banking analysts note that more Colorado banks have failed in 2011 than did during the 1980’s “savings and loan debacle,” leading some experts to predict that lenders are likely to experience any economic recovery in a delayed fashion, largely due to the fact that “commercial real estate takes a long time to resolve”[3]. Four lenders have been shut down in Colorado alone this year.
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[1] http://www.dsnews.com/articles/regulators-shut-down-florida-and-colorado-lenders-2011-07-25
[2] http://www.mortgageorb.com/e107_plugins/content/content.php?content.9239
[3] http://www.coloradoan.com/article/20110727/BUSINESS/107270315/Banks-closing-state-unprecedented-pace
