The FDIC has seized failed banks on each of the past seven Fridays. As I understand it, the government prefers to seize banks after the close of business on Friday to prevent any unnecessary runs on the banks and give them the weekend to ensure a seamless transition to a new bank for depositors on Monday.
Here are the number of bank failures over the past seven weeks:
- Feb 27 (2)
- Feb 20 (1)
- Feb 13 (4)
- Feb 6 (3)
- Jan 30 (3)
- Jan 23 (1)
- Jan 16 (2)
So, with the economy continuing to deteriorate, the question is how many more failed banks will the FDIC at the close of business today?
Based on the clear acceleration of failures in recent months (see below), I'll predict four more banks will go under today.