A story published today on Indiatimes.com informs of the latest addition to this year’s failed banks. The article goes on to stating that “More collapses are expected among the nation’s 8,400 banks.”. This doesn’t really restore or boost any confidence in the US banking sector right now and will surely only fuel what I blogged about earlier this week: Worried investors are pulling out billions.

The two banks that have collapsed under increasing economic turmoil were the Houston-based Franklin Bank and the smaller Los Angeles-based Security Pacific Bank. The Franklin Bank website shows a notice stating: “On November 7, 2008, Franklin Bank, SSB, Houston, TX was closed by the Texas Department of Savings and Mortgage Lending. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.” - no big deal really, business as usual, or not? The Security Pacific Bank website shows a similar notice.

This brings the total number of US banks that have gone bust in 2008 to 19 and if things continue like this these two will surely not be the last ones.

Image by: neubie under CreativeCommons