Comments on: Bank Failures Today vs. S&L Crisis — Chart of the Day http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/ Mutual Funds, Investing, Retirement, Economy, Personal Finance Thu, 20 Nov 2008 13:47:09 +0000 http://wordpress.org/?v=2.3.1 By: Kurt Brouwer http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1279 Kurt Brouwer Sun, 17 Aug 2008 05:36:46 +0000 http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1279 Based on the chart from bestcashcow.com, it seems that we had several years in the 1980s with $100 billion or more in assets at failed banks. This year, it's probably $40-50 billion with most of that coming from Indymac's $32 billion. So, unless Indymac was a precursor of many more large banks that will fail this year, I think it's safe to say this crisis does not rise to the level of the S&L crisis. Based on the chart from bestcashcow.com, it seems that we had several years in the 1980s with $100 billion or more in assets at failed banks. This year, it’s probably $40-50 billion with most of that coming from Indymac’s $32 billion. So, unless Indymac was a precursor of many more large banks that will fail this year, I think it’s safe to say this crisis does not rise to the level of the S&L crisis.

]]> By: Anonymous http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1277 Anonymous Sun, 17 Aug 2008 02:28:21 +0000 http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1277 Here's a graph showing bank failures in term os assets. http://www.bestcashcow.com/the_economy/article/sol_nasisi/how-bank-failures-in-2008-compare-to-tough-times-in-1980s We are still nowhere near the last crisis. Here’s a graph showing bank failures in term os assets.

http://www.bestcashcow.com/the_economy/article/sol_nasisi/how-bank-failures-in-2008-compare-to-tough-times-in-1980s

We are still nowhere near the last crisis.

]]> By: Kurt Brouwer http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1151 Kurt Brouwer Mon, 28 Jul 2008 18:03:37 +0000 http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1151 The largest bank failure in history was the Continental Bank failure in 1984. That was just before the S&L crisis really hit. IndyMac was about $32 billion in assets, so that is pretty darn big though. Two more bank failures were announced last week. This current problem is not trivial, but it still pales in comparison to the failures during the S&L crisis, both in terms of numbers and assets. I don't have the total assets, but something like 3,000 banks failed in the 1980s. Yikes. The largest bank failure in history was the Continental Bank failure in 1984. That was just before the S&L crisis really hit. IndyMac was about $32 billion in assets, so that is pretty darn big though. Two more bank failures were announced last week. This current problem is not trivial, but it still pales in comparison to the failures during the S&L crisis, both in terms of numbers and assets. I don’t have the total assets, but something like 3,000 banks failed in the 1980s. Yikes.

]]> By: Victor http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1138 Victor Sun, 27 Jul 2008 01:04:33 +0000 http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1138 You're missing a more important point which is size. The thrifts that failed in the S&L crisis were tiny. The banks at risk of failing in this crisis are MASSIVE. Washington Mutual, Wachovia and Citigroup will all be unlikely to survive in their current form You’re missing a more important point which is size. The thrifts that failed in the S&L crisis were tiny. The banks at risk of failing in this crisis are MASSIVE.

Washington Mutual, Wachovia and Citigroup will all be unlikely to survive in their current form

]]> By: Kurt Brouwer http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1077 Kurt Brouwer Tue, 15 Jul 2008 16:17:01 +0000 http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1077 That's a good question. You'd have to look at combined assets of bank failures today versus back then. This link to the FDIC only goes back to 2000, but you may be able to poke around and go back further: http://www.fdic.gov/bank/individual/failed/banklist.html That’s a good question. You’d have to look at combined assets of bank failures today versus back then. This link to the FDIC only goes back to 2000, but you may be able to poke around and go back further: http://www.fdic.gov/bank/individual/failed/banklist.html

]]> By: HUTCH http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1074 HUTCH Tue, 15 Jul 2008 03:50:17 +0000 http://www.fundmasteryblog.com/2008/07/14/bank-failures-today-vs-sl-crisis-chart-of-the-day/#comment-1074 Interesting chart, but I wonder how the chart compares given the significant amount of M&A activity that has occurred in the banking sector over the past 2 decades? Interesting chart, but I wonder how the chart compares given the significant amount of M&A activity that has occurred in the banking sector over the past 2 decades?

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