I wonder if the FDIC shuts down tons of banks these week or holds off on shutting down anything since the government is just gonna nationalize all 8000 anyway.
FDIC Friday again...two banks closed this time. http://www.bloomberg.com/apps/news?pid=20601087&sid=al0NUA96m.dI&refer=home Illinois, Michigan Banks Fail; Boosts Closings to 15 (Update1) By Alison Vekshin and Ian Katz Oct. 10 (Bloomberg) -- Banks in Illinois and Michigan were closed by regulators today, boosting to 15 the failures this year, as tightening credit and a deepening housing slump accelerate government action to shore up financial institutions. Meridian Bank of Eldred, Illinois, with $39 million in assets and $37 million in deposits, was closed by the state and the Federal Deposit Insurance Corp. was named receiver. National Bank of Hillsboro, Illinois, acquired the deposits and four branches will reopen tomorrow and one on Oct. 14, the FDIC said. Main Street Bank of Northville, Michigan, with $98 million in assets and $86 million in deposits, was shut by the state and turned over to the FDIC. Monroe Bank & Trust of Monroe, Michigan, acquired the deposits and tomorrow will open the two offices as branches, the FDIC said in a statement. ``The dramatic downturn in the residential real estate market unfortunately knocked the wind'' out of Main Street, Ken Ross, commissioner of Michigan's Office of Financial and Insurance Regulation, said in a statement. Regulators have now closed the most banks in 15 years, and the collapses of Washington Mutual Inc. and IndyMac Bancorp Inc. were among the biggest in history. The deepening housing slump and tight credit led to enactment of a $700 billion bank rescue plan, and triggered a bankruptcy by Lehman Brothers Holdings Inc. and nationalization of Fannie Mae and Freddie Mac. Insurance Fund The FDIC said closing Main Street will cost the deposit insurance fund $33 million to $39 million while closing Meridian will cost $13 million to $14.5 million. The fund had $45.2 billion at the end of the second quarter. In Michigan, Monroe Bank agreed to pay a premium of 1 percent for Main Street's deposits, the FDIC said. Monroe also will buy about $16.9 million in assets and has a 90-day option to acquire $1.1 million additional assets of the failed bank. National Bank will purchase about $7.5 million of Meridian's assets and didn't pay the FDIC a premium for the right to assume all of the failed bank's assets, the FDIC said. The FDIC retains the remaining assets. Meridian's four offices in the Illinois towns of Altamont, Carlyle and Eldred will reopen for normal hours tomorrow, and the Alton office will reopen Oct. 14, the FDIC said. All depositors of Main Street and Meridian will have uninterrupted access to their money, which will continue to be insured, the FDIC said. Deposit Premiums The FDIC insures deposits of up to $250,000 per depositor per bank and a similar amount for some retirement accounts at 8,451 institutions with $13.3 trillion in assets. The agency is doubling the premiums banks pay to replenish the reserves amid forecasts failures through 2013 will cost almost $40 billion. Washington Mutual, the biggest savings and loan, sold its assets to JPMorgan Chase & Co. Sept. 25 after customers drained $16.7 billion in deposits in less than two weeks. Wachovia Corp., the sixth-biggest bank, agreed to be acquired by Wells Fargo Co. for $11.7 billion, trumping an FDIC-brokered sale of banking operations to Citigroup Inc. The FDIC is running a successor to California lender IndyMac Bancorp, closed in July in the fourth-largest bank seizure, and easing mortgage terms for more than 1,200 borrowers. The failure drained more than 10 percent from the U.S. insurance fund. `Problem' Banks The agency in August said 117 banks were classified as ``problem'' in the second quarter, a 30 percent jump from the first quarter. The agency doesn't name the ``problem'' lenders. Before today's action, 39 banks failed since October 2000, according to a list at fdic.gov. Regulators this year also closed Ameribank in Northfork, West Virginia, on Sept. 19; Silver State Bank of Henderson, Nevada, on Sept. 5; Integrity Bank of Alpharetta, Georgia, Columbian Bank and Trust of Topeka, Kansas, and First Priority Bank of Bradenton, Florida, in August; Reno-based First National Bank of Nevada and Newport Beach, California-based First Heritage Bank in July; Staples, Minnesota-based First Integrity Bank and ANB Financial in Bentonville, Arkansas, in May; Hume Bank in Hume, Missouri, in March; and Douglass National Bank in Kansas City, Missouri, in January.
And another bank bites the dust and costs FDIC fund $158Million. http://www.fdic.gov/news/news/press/2008/pr08106.html Stearns Bank, National Association Acquires the Insured Deposits of Alpha Bank & Trust, Alpharetta, GA FOR IMMEDIATE RELEASE October 24, 2008 Media Contact: David Barr: Office â 202-898-6992 Cell â 703-477-6290 dbarr@fdic.gov Alpha Bank and Trust, Alpharetta, Georgia, was closed today by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume the insured deposits of Alpha Bank & Trust. The two branches of Alpha Bank & Trust will open on Monday, October 27, 2008 as Stearns Bank, N.A. Depositors of the failed bank will automatically become depositors of Stearns Bank, N.A. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Over the weekend, customers of Alpha Bank & Trust can access their insured deposits by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual. As of September 30, 2008, Alpha Bank & Trust had total assets of $354.1 million and total deposits of $346.2 million. Stearns Bank did not pay the FDIC a premium for the right to assume the failed bank's insured deposits. At the time of closing, there were approximately $3.1 million in uninsured deposits held in approximately 59 accounts that potentially exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers. Alpha Bank & Trust also had approximately $16.8million in brokered deposits that are not part of today's transaction. The FDIC will pay the brokers directly for the amount of their insured funds. Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-800-591-2912 to set up an appointment to discuss their deposits. This phone number will be operational this evening until 9:00 p.m. EST; on Saturday from 9:00 a.m. to 5:00 p.m. EST; and Sunday 12:00 EST to 5:00 EST and thereafter from 8:00 a.m. to 8:00 p.m. EST. Customers who would like more information on today's transaction should visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/alpha.html. Beginning Monday, depositors of Alpha Bank & Trust with more than $250,000 at the bank may visit the FDIC's Web page, "Is My Account Fully Insured?" at http://www2.fdic.gov/dip/Index.asp to determine their insurance coverage. In addition to assuming the failed bank's insured deposits, Stearns Bank, N.A. will purchase approximately $38.9 million of Alpha's assets. The FDIC will retain the remaining assets for later disposition. The transaction is the least costly resolution option, and the FDIC estimates that the cost to its Deposit Insurance Fund will be $158.1 million. The last bank to fail in Georgia was Integrity Bank, Alpharetta, on August 29, 2008. Alpha Bank & Trust is the sixteenth FDIC-insured institution to be closed this year.
Another week another bank and this one is going to cost $100M. http://www.fdic.gov/news/news/press/2008/pr08109.html Fifth Third Bank Acquires All the Deposits of Freedom Bank, Bradenton, Florida FOR IMMEDIATE RELEASE October 31, 2008 Media Contact: David Barr Office: 202-898-6992 Cell: 703-622-4790 e-mail: dbarr@fdic.gov Freedom Bank, Bradenton, Florida, was closed today by the Commissioner of the Florida Office of Financial Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Fifth Third Bank, Grand Rapids, Michigan, to assume all of the deposits of Freedom Bank. The four branches of Freedom Bank will reopen on Monday as branches of Fifth Third Bank. Depositors of the failed bank will automatically become depositors of Fifth Third. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until Fifth Third can fully integrate the deposit records of Freedom Bank. Over the weekend, depositors of Freedom Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual. As of October 17, 2008, Freedom Bank had total assets of $287 million and total deposits of $254 million. Fifth Third agreed to assume all the deposits for a premium of 1.16 percent. In addition to assuming the failed bank's deposits, Fifth Third will purchase approximately $36 million of assets. The FDIC will retain the remaining assets for later disposition. Customers who have questions about today's transaction can call the FDIC toll free at 1-800-591-2767. This phone number will be operational this evening until 9:00 p.m. eastern; on Saturday from 9:00 a.m. to 5:00 p.m. eastern; and on Sunday Noon until 5:00 p.m. eastern and thereafter from 8:00 a.m. to 8:00 p.m. eastern. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/freedom.html. The FDIC estimates that the cost to the Deposit Insurance Fund will be between $80 million and $104 million. Fifth Third's acquisition of all deposits was the "least costly" resolution for the FDIC's Deposit Insurance Fund compared to alternatives. The last failure in Florida was First Priority Bank, Bradenton, which was closed on August 1, 2008. Freedom Bank is the seventeenth FDIC-insured institution to be closed this year.
Another week another two banks gone and FDIC fund gets a hit of over $1.5billion. http://www.fdic.gov/news/news/press/2008/pr08114.html Press Releases Pacific Western Bank Acquires All the Deposits of Security Pacific Bank, Los Angeles, California FOR IMMEDIATE RELEASE November 7, 2008 Media Contact: David Barr (202) 898-6992 Cell: 703-622-4790 e-mail: dbarr@fdic.gov Security Pacific Bank, Los Angeles, California, was closed today by the Commissioner of the California Department of Financial Institutions, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Pacific Western Bank, Las Angeles, California, to assume all of the deposits of Security Pacific. The FDIC estimates that the cost to the Deposit Insurance Fund will be $210 million. Pacific Western's acquisition of all deposits was the "least costly" resolution for the FDIC's Deposit Insurance Fund compared to alternatives. Security Pacific is the nineteenth bank to fail in the nation this year, and the third in California. The last bank to be closed in the state was First Heritage Bank, National Association, Newport Beach, on July 25, 2008. http://www.fdic.gov/news/news/press/2008/pr08113.html Press Releases Prosperity Bank Acquires All the Deposits of Franklin Bank, S.S.B., Houston, Texas FOR IMMEDIATE RELEASE November 7, 2008 Media Contact: David Barr (202) 898-6992 Cell: 703-622-4790 e-mail: dbarr@fdic.gov En Español Franklin Bank, S.S.B., Houston, Texas, was closed today by the Texas Department of Savings and Mortgage Lending, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Prosperity Bank, El Campo, Texas, to assume all of the deposits, including those that exceeded the insurance limit, of Franklin Bank. The FDIC estimates that the cost of today's transaction to its Deposit Insurance Fund will be between $1.4 billion and $1.6 billion. Prosperity Bank's acquisition of all deposits was the "least costly" resolution for the FDIC's Deposit Insurance Fund compared to alternatives. Franklin Bank is the eighteenth bank to fail in the nation this year, and the first in Texas since Bank of Sierra Blanca, Sierra Blanca, Texas, on January 18, 2002.
Another week another bank gone. This one just cost $200M. Funny though I was expecting to see Citigroup on the list. I wonder if all the new "banks" that converted from insurance companies and investment banks are covered under the FDIC umbrella? http://www.fdic.gov/news/news/press/2008/pr08123.html Press Releases Bank of Essex, Tappahannock, Virginia Acquires All the Deposits of The Community Bank, Loganville, GA FOR IMMEDIATE RELEASE November 21, 2008 Media Contact: David Barr: Office â 202-898-6992 Cell â 703-622-4790 dbarr@fdic.gov The Community Bank, Loganville, Georgia, was closed today by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of Essex, to assume all of the deposits of The Community Bank. The Community Bank's four branches will open on Monday, November 24, 2008 as Bank of Essex. Depositors of the failed bank will automatically become depositors of Bank of Essex. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. The transaction is the least costly resolution option, and the FDIC estimates that the cost to its Deposit Insurance Fund will be between $200 million and $240 million. The Community Bank is the twentieth FDIC-insured institution to be closed nationwide, and the third in Georgia, this year.