Only one small Georgia bank was closed by regulators on Friday bringing the total of bank failures to 12 for 2012 in comparison to 23 at this time in 2011. The reduction in bank failures alone states some improvement in the banking system in 2012, and the FDIC did affirm overall improvement in the banking sector in the recent release of the fourth quarter report. The report did show a broad improvement in the banking sector over 2011 including aggregate profits, reduction in number of banks troubled bank list, Deposit Insurance Fund continues to increase after going into the negative in 2010, and deposits did increase in the fourth quarter of 2011. The overall report does show a substantial improvement, but a collective sense of optimism will not be found to the dominant attitude. The FDIC did report improvement in the system, but one bank did fail on Friday to remind of the current economic frailty of the global economy. The global reminder of the precarious nature of the global … [Read more...]
