Northern Star Bank, Mankato, Minnesota, failed today, costing the FDIC $5.9 million.
As of September 30, 2014, there are 6,589 institutions remaining in the FDIC system.
That means that since the summer another 67 formerly independent participating institutions in the FDIC have left the system, most of which have been absorbed by larger institutions through acquisition and mergers because they were no longer able to survive and compete as stand-alone profitable banks in the new rigorous regulatory environment imposed under the Dodd-Frank legislation and Basel capital rules.
Over 300 formerly FDIC-participating institutions have suffered this same fate since the beginning of this year.
And in February 2007 there were 8,743 FDIC member institutions, 2,154 more than there are now. Only 500+ of these failed. The rest have been gobbled up by big-banking.
