Small banks failing as larger firms regain health - Yahoo! Finance

Small banks failing as larger firms regain health - Yahoo! Finance U.S. banks are failing at the fastest rate in two decades. No, the financial crisis hasn't returned. Wall Street doesn't need another bailout. But in communities around the country, 143 banks have collapsed so far this year - more than all of last year. This time, the failed banks are smaller, on average, than in 2008 and 2009. The damage to the industry has thus been milder this time. Still, the wave of closings points to the persistent struggles of many communities and states. On Friday, regulators closed four small banks: One each in Maryland and Washington state and two in California -- one of the hardest-hit states, where a dozen banks have failed this year. As larger banks have regained their health this year, thanks in part to federal aid, smaller ones have struggled