The Royal Bank of Canada just released a report, and they say most of the upcoming failures will be caused by commercial real estate (CRE) loans. Excerpt:

The Federal Deposit Insurance Corp. closed nine banks so far this year after shutting 25 in 2008 and has 171 institutions on its “problem list.”

To summarize: since 2008 we’ve only closed 34 banks. And RBC says 1,000 may close over the next 3 years. It’s highly unlikely that the FDIC will have enough to cover all those failures. We might need to toss them a trillion too.