Trouble with banks was one of the first harbingers of what has become known as the Great Recession, and of the lackluster recovery that has followed. Perhaps an improved banking environment will be an early signal that the economy is finally getting healthy again.
I am incensed that no CEO of a major corporation who is alleged to have contributed to the Great Recession has been pursued criminally. All of us have read and heard the phrase, "Too big to fail." I have suggested an add-on: "Too big to jail."
On Feb. 10, 2012 the FDIC shifted bank closure activity from the south to the center of the country this week failing Charter National Bank and Trust in Hoffman Estates, Ill. and SCB Bank of Shelbyville, Ind.
The failure of any one bank can be traced to a number of factors specific to that bank. However, the fact that bank failures seem to occur in clusters, heavy in some states, light in others, suggests that there are risk factors specific to certain areas.
Bernanke may have no choice but to rescue to the big banks, but you do have a choice. You can move your money to a local institution that offers lots of upside when it succeeds and minimal impact when it fails.