MIAMI (CBSMiami) – The Great Recession took a toll on the banking industry the likes of which hadn’t been seen since the Great Depression. But in 2012, bank failures finally started to slow down signaling the worst of the financial crisis may finally be in the past.
According to the Federal Deposit Insurance Corporation, in 2012 there were 51 bank failures in the United States. In the Sunshine State, a total of eight banks failed in 2012. The only South Florida banks to fail were First East Side Savings Bank in Tamarac and Security Bank of North Lauderdale, costing a combined $166.7 million.
While the numbers in 2012 improved, the depth of the Great Recession took quite a toll on the banking industry. A total of 465 banks have failed since the start of 2008, but the FDIC has covered all of the failures, meaning no customers have lost any money due to the failures.
From 2008 to 2011, the rash of bank failures cost the FDIC $88 billion and the FDIC expects failures from 2012-2016 to cost about $10 billion more. Currently, the FDIC balance stands at $25.2 billion as of the end of the 2012 fiscal year on September 30.
The five biggest banks to fail since the financial crisis started in late 2007 include: Washington Mutual, IndyMac, Colonial Bank, Guaranty Bank, and BankUnited based in Coral Gables. The BankUnited failure in May 2009 cost $12.8 billion.
Georgia had the most bank failures from 2008 to 2010 with 84 while Florida was second with 66 bank failures during that time.
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