The Other McCain

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Bank Crisis Continues; United Western Becomes Biggest Failure in Five Months

Posted on | January 22, 2011 | 4 Comments

Isn’t “recovery” wonderful?

State regulators shut down four banks on Friday, bringing the new year’s total number of bank failures to seven, following 157 bank closures during 2010.
Three of the four failed banks — Enterprise Banking Co., CommunitySouth Bank & Trust, and The Bank of Asheville — had been previously included in TheStreet’s Bank Watch List of undercapitalized institutions, based on third-quarter regulatory data provided by SNL Financial.
United Western Bank is the lone exception. Its failure represents the biggest bank to go belly up since August.

I’ve previously explained that lawsuits and regulation hindering the foreclosure process spell economic disaster for the real-estate market. A further collapse of real estate could take down the banking industry with it. Calculate Risk reports that the (unofficial) problem bank list now includes 937 institutions.

Thanks to Smitty in our Kabul bureau for the e-mail tip.

Category: Economics

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