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Last year, bank failures slowed to 51
-- still more than normal. In a strong economy, an average of four or five banks close annually. The sharply reduced pace of bank closings shows sustained improvement. From 2008 through 2011, bank failures cost the deposit insurance fund an estimated $88 billion, and the fund fell into the red in 2009. With failures slowing, the fund's balance turned positive in the second quarter of 2011. The fund had a $35.7 billion balance as of March 31, up from $32.9 billion at the end of December. The FDIC expects bank failures from 2012 through 2016 will cost the fund $10 billion.
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