Over the weekend, two more banks failed (Downey Savings and PFF Bank). US Bank bought their assets.

 Downey is the third largest bank to fail this year, and US Bancorp has agreed to change the terms of mortgages taken out by Downey and PFF customers, in a program similar to the one the Federal Deposit Insurance Corp is using for mortgages held by IndyMac. The FDIC agreed to share losses on the acquired loans with the bank’s U.S. Bank unit. U.S. Bank had 2,556 branches before this transaction, of which 353 were in California. Downey has 170 branches in California and five in Arizona while PFF Bank has 38 branches in California. So far this year, 22 banks have failed, the most since 1993 when 50 banks failed.

http://www.bloomberg.com/apps/news?pid=20601087&sid=arqqycIZzpZg&refer=home

 

We continually hear, “as bad as the great depression”, but during the depression over 10,000 banks failed and there was NO FDIC for depositors.