Bair: Bank failures to rise in 2010

A top government regulator predicted Monday more banks will fail in 2010 than last year.

Sheila Bair, chairwoman of the Federal Deposit Insurance Corporation (FDIC), said on CNBC that more banks will fail this year than the 140 that failed in 2009, but she cautioned the number would not rise dramatically.

"We had 140 last year. We think it's going to be higher than that. Not a lot higher, but it will be higher this year," Bair said. So far 41 banks have failed this year.

Bair said banking recoveries traditionally lag broader improvements in the economy.