The FDIC’s failed bank list has now officially exceeded 100 institutions for 2009.
Failed Banks
While Congress and Treasury officials debate authority to seize potentially failing institutions of systemic risk, this year alone 106 banks have failed as of October 23rd. More are expected, with a potential for an exponential failure rate in the last weeks of December.

Meanwhile, Congress has yet to pass any legislation that has become the actual law of the land that protects Americans from predatory lending or resolves the core causes of the financial crisis. Today, consumers are at the same level of risk of predatory lenders that existed in 2006.

It has been reported by the Special Inspector General of the TARP program that as of July 2009, more than $23.7 Trillion has been pumped into the economy. Yet despite that sum, more than 165% of GDP, unemployment continues to rise, foreclosures are continuing at alarming rates and commercial lenders are still at risk, while small businesses are failing by the minute.

When, in good conscience will the Congress actually move to pass laws that protect the American taxpayer; prevent recurrence of the crisis; make predatory lending illegal; or provide the technological solutions needed to regulate lenders in real time.

Be forewarned, the so-called recovery media speaks of daily and the DOW hovering near 10,000 is at grave risk of being the prelude to the real storm, laying off-shore, waiting for the moment to strike hard. At some point, with the potential failure of one of the mega-banks, for example, investors could flee the markets and we could see a 1930’s Depression, with no sentiment in Congress or funds available to restore the system.

That storm is brewing, and it will come. Whether it turns out to be typhoon class or just a tropical storm is solely up to the enactment of laws that protect the system and the public.

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