There’s not a lot of good news out there these days, but one bit of welcome news is the trend in bank failures.   2011 is showing a distinct improvement in the cumulative number and size of bank failures in the USA.  The Economist says the size of the banks failing are half the amount of the average failure just last year at $430MM vs $867MM last year.  Most importantly, maybe (just maybe) this is an excuse for Ben Bernanke to stop worrying so much about his slave masters at the big banks.  But probably not.

Source: The Economist


Got a comment or question about this post? Feel free to use the Ask Cullen section, leave a comment in the forum or send me a message on Twitter.

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.

More Posts - Website

Follow Me:


  1. Sweet Jesus look at the rare earth sector right now!! Even though I have been getting killed lately, this opportunity I think is around once more right now!

    Big invested in QRM and TSM.

    With that said, who knows! Good luck out there.

  2. Oh, and good, the Fed’s number one priority is taken care of (which was the reason the FEd was foudned).

    Let’s get on to business shall we!

  3. in short, I’d say this is just going to drag out longer: the liquidity is there for the banks to survive the near term, but the Net Interest Margin is not sufficient to ‘earn’ out of this… the banks are not closing, bu they are not profitable either. in large part, the reason for so many zombie/unprofitable banks are that there are not enough strong banks to buy the assets — and of those that are strong enough, they don’t see enough potential return to acquire. (ie lack of loan demand.) it will be longer and slower than S&L.

    as an aside: Cullen, you are risking your comments section going the way of ZH if you allow folks to hi-jack/post off-topic like the posts above mine. To those posting off-topic, I will suggest you start a thread on the msg board rather than posting random musings…

  4. jswede:

    I hope you weren’t referring to my comment. It seemed on topic, and it turned out to be enough of an event to merit a particularly good CR post today.

    I’m sure I take as much interest in preventing a ZH commenting environment here as you do.

    Still, one can never be sure how one is percieved without feedback. I endeavor to be a good net citizen.