Friday market the largest amount of United States government take overs in one single day since the beginning of the financial crisis and the almost complete collapse of the financial sector of the United States.

The nine banks (which brings the total to 115 for the number of failed banks in 2009) that were taken over showed that there is a trend in the banking industry that banks are begging to be injured by bad loans that are going south quickly.

Even with these bank failures, these are smaller banks. The largest was still Washington Mutual when it was seized just over a year ago in September 2008.

The banks, which were being held by FBOP Corp, were acquired by U.S. Bancorp to the tune of $18.4 billion in assets as well as $15.4 billion of deposits. U.S. Bancorp has been going around this year purchasing distressed assets.

It is unsettling to know that banks are still failing and will likely continue to fail as more loans begin to mature and become due. There is also an issue that is coming up concerning Option-A mortgages’ rates resetting in the next year. These were a lot like the subprime mortgages that caused so much of the financial crisis. When they reset in the next couple of years, we could actually see a bigger problem than what we saw in the past two years with subprime mortgages and foreclosures.

With foreclosures on the rise and unemployment really not letting up either, the problem with banks is also going to likely get worse before it gets better. I am not sure if there will be more bank takeovers in the next year, but the FDIC was already hurting from all the banks it had to pick up after they failed

The Federal Deposit Insurance Corporation, or the FDIC, has been scooping up failing banks and doing exactly what it was designed to do, protect consumers who have put money in the bank from losing it all when a bank goes out of business.

However, there is a definite problem when several banks fail and the FDIC has to continually rescue them. That’s what’s been going on for the past year. Now, we’re up to the 100th bank closure in the United States since the beginning of the bank crisis a year ago.

What’s worse is that even though a hundred banks have already failed, it is anticipated that many more will fail as loans to small businesses go bad over the next few years. This will put more banks out of business at an increasing rate.

Bank failures have already put a serious strain on the FDIC. Just two years ago, it had $50 billion in its fund, and now it is in the red.

“In the near term, bank failures can be painful,” said Sheila C. Bair, the chairwoman of the Federal Deposit Insurance Corporation. But a bank that is teetering on collapse is not going to lend, she said, and “that’s not good for the economy.”

What happens to the FDIC when all the money runs out? It has to get its money from somewhere else. The FDIC is hurting right now and the more banks that fail it becomes more and more apparent. I just hope that it doesn’t come to a point where people who have their money in the banks aren’t able to get their money out because their bank has failed and the FDIC is completely out of money and unable to get any more.

The FDIC was created in a recession to ease fears, now it seems like with the failure of so many banks, all those fears are coming back with or without reason.