"What No One Says"
Over the last 40 years, there have been numerous bank failures, especially in the United States, that have significantly impacted the financial system. From 2001 to 2024, the Federal Deposit Insurance Corporation (FDIC) recorded 566 bank failures. These failures vary in size and impact, with 2008 and 2009 witnessing the highest number of failures due to the global financial crisis. In these years, 25 banks failed in 2008 with total assets of approximately $373.6 billion, while in 2009 the number rose to 140 banks with assets of about $170.9 billion.
The list of failures includes banks of various sizes, from those with a few hundred million dollars in assets to those with tens of billions. Notable cases include the failure of Alpha Bank & Trust in Georgia in 2008, with assets of $354.1 million, and the larger Downey Savings and Loan in California with $12.8 billion in assets the same year. In 2009, the list significantly expanded, reflecting the worsening financial crisis, with banks like FirstBank Financial Services in Georgia and Omni National Bank in Georgia demonstrating the breadth and depth of the problems in the sector.
These events have highlighted the fragility of the banking system in the face of economic and financial crises, as well as the important role of entities like the FDIC in maintaining system stability through deposit insurance and the orderly management of bank failures. The crisis also spurred regulatory reforms and policy changes aimed at preventing future crises of such magnitude.