The FDIC closed seven banks yesterday, the highest number in one week since 1998. But back then, during the S&L crisis, things were much worse, believe it or not:
So far there have been 52 FDIC bank failures in 2009.
It appears the pace has picked up lately (12 bank closings over the last two weeks).
There were 28 weeks during the S&L crisis when regulators closed 10 or more banks, and the peak was April 20, 1998 with 60 bank closures (there were 7 separate weeks with more than 30 closures in the late '80s and early '90s).
(Emphasis in original.)
Still, if you have money on depsoit in the John Warner Bank, Clinton, Ill.; First State Bank of Winchester, Ill.; Rock River Bank, Oregon, Ill.; Millennium State Bank of Texas, Dallas; Elizabeth State Bank, Ill.; First National Bank of Danville, Ill.; or Founders Bank, Worth, Ill.; you may want to swing on by Monday and meet the new owners.
By the way, this doesn't mean that Illinois is a particularly bad place for banks. It's far more likely that the cluster of bank failures downstate has more to do with the logistics of getting FDIC personnel to so many at once. NPR has a good explanation of how it works.
And anyway, my deposits are at Citi, so I'm not at all worried about my bank's soundness.
Not one tiny bit.
Perfectly safe bank, Citi.