Why are all of the bank failures a non-issue?

Quote from Pekelo:

What is the number of US banks?

>4,893 banks or savings institutions have more than $100 million in assets;

http://wiki.answers.com/Q/Total_number_of_banks_in_US

So 150 banks failing out of 5000 that is 3%. I bet in the restaurant industry the annual failure rate is probably twice as much. (edit: Boy, did I underestimate it)

Just an observation.....

Edit: Here is the data from Ohio:

http://www.businessweek.com/smallbiz/content/apr2007/sb20070416_296932.htm

"His research—consistent with similar studies—found that about one in four restaurants close or change ownership within their first year of business. Over three years, that number rises to three in five.

While a 60% failure rate may still sound high, that's on par with the cross-industry average for new businesses, according to statistics from the Small Business Administration and the Bureau of Labor Statistics."

So a 3% annual failure rate for an industry is pretty darn good! :)
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We're not here to talk about annual rate of turnover, now were we? As far as restaurants go, I didn't know there were any "too big to fail" eateries that enjoyed special protection!
 
Quote from schizo:
And neither were countless borrowers who signed up for a liar loan. Quit twisting the fact to suit your distorted views.
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I am not doing any twisting here... It's a simple fact that, in our current system, large institutions that are perceived to be systemically important by the authorities are not risky businesses. In fact, they are deemed to be providers of an important public good; specifically, the stability of the international banking system.
 
Quote from mgookin:

Community banks are not allowed to borrow from the Fed. Only bank holding companies and still then they have to have a minimum net worth. I believe it's only the "member banks" which enjoy the priveldge of 0% Fed money where they go across the street and lend it to the Treasury at 4%. A third grader could make $5B/ quarter doing that.
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This is factually untrue, pretty much in every imaginable way...
 
Regulators shut down 3 banks in Puerto Rico, 2 in Missouri, 1 in Michigan; makes 63 this year

"The number of bank failures likely will peak this year and will be slightly higher than in 2009, FDIC Chairman Sheila Bair said recently.

As losses have mounted on loans made for commercial property and development, the growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, hitting a $20.9 billion deficit as of Dec. 31.

The number of banks on the FDIC's confidential "problem" list jumped to 702 in the fourth quarter from 552 three months earlier, even as the industry squeezed out a small profit. Still, nearly one in every three banks reported a net loss for the latest quarter.

The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years."

http://finance.yahoo.com/news/Regulators-close-banks-in-apf-1507617949.html?x=0
 
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