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Largest failure this year! Colonial BancGroup shut by regulators.

"WASHINGTON (AP) -- Regulators on Friday shut down Colonial BancGroup Inc., a big lender in real estate development that buckled under the collapse of the market. It was the biggest U.S. bank to fail this year, with about $25 billion in assets."

"The failure of Colonial is expected to cost the deposit insurance fund an estimated $2.8 billion."

Read more at :http://finance.yahoo.com/news/Colonial-BancGroup-shut-by-apf-3314129410.html?x=0
Ouch.



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wait till the fdic report

wait till the fdic report comes out on August 25th... bank holiday in September??

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.

Yup..it is not going to be good at all....

Keep your eyes open, and be prepared. They have most of America entranced with the Healthcare garbage right now, and before we know it Geithner, the Congress, and the Federal Reserve will be printing more money for the bankrupt FDIC. Please read this article from the Examiner:

The-nation-quickly-descending-into-chaos

"A very dangerous thing occurred last Thursday and Friday. The Federal Reserve monetized roughly 40% of the nation's enormous debt. This means that the Fed printed money to flow into the economy in order to cover over 40% of the debt burden the U.S. now carries.

Within days the U.S. government quickly sold off this portion of the debt, creating even more debt, leading Treasury Secretary Timothy Geithner to request from Congress a lifting of the debt ceiling so that we could cover our obligations. That, of course, will create even more debt.

This economic shop talk may sound like gobbledygook to most average citizens, like myself. But the bottom line is that what the Fed did last week will create what is known as 'hyper-inflation.' The cost of goods and services rises so fast that average citizens can't afford the basic essentials of living".

Continue reading this article here:

http://www.examiner.com/x-3704-Columbia-Conservative-Examine...

My metal's dealer

has a big banker friend. He manages several banks. He predicts a bank holiday in mid-September.

I have heard the same...

dducks, and from different sources. I think FDIC is going to give government some really bad news with their 2nd quarter report, and a bank holiday will be in the cards, but it will be a surprise to quite a few.

SteveMT's picture

Colonial BancGroup, 4 other banks shut

Regulators shut Colonial BancGroup, 4 other banks; 77 US bank failures this year

* By Marcy Gordon, AP Business Writer
* On Friday August 14, 2009, 10:50 pm EDT

WASHINGTON (AP) -- Regulators on Friday shut down Colonial BancGroup Inc., a lender in real estate development, in the biggest U.S. bank failure this year, and also closed four banks in Arizona, Nevada and Pennsylvania.

The closures boosted to 77 the number of federally insured banks that have failed in 2009.

The Federal Deposit Insurance Corp. was appointed receiver of the banks: Montgomery, Ala.-based Colonial, with about $25 billion in assets; Community Bank of Arizona, based in Phoenix; Union Bank, based in Gilbert, Ariz.; Community Bank of Nevada, based in Las Vegas; and Dwelling House Savings and Loan Association, located in Pittsburgh.

The FDIC approved the sale of Colonial's $20 billion in deposits and about $22 billion of its assets to BB&T Corp., which is based in Winston-Salem, N.C. The failed bank's 346 branches in Alabama, Florida, Georgia, Nevada and Texas will reopen at the normal times starting on Saturday as offices of BB&T, the FDIC said.

The failure of Colonial is expected to cost the deposit insurance fund an estimated $2.8 billion.

The 77 bank failures nationwide this year compare with 25 last year and three in 2007.

The number of banks on the FDIC's list of problem institutions leaped to 305 in the first quarter -- the highest number since 1994 during the savings and loan crisis -- from 252 in the fourth quarter. The FDIC expects U.S. bank failures to cost the insurance fund around $70 billion through 2013.

http://finance.yahoo.com/news/Colonial-BancGroup-4-other-apf...

5 Now!! Wow!

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Keep up with Denninger.

Keep up with Denninger. Read it every day.

http://market-ticker.denninger.net/

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

I second that

I recently discoverd his site. I cant wait until his new podcasts to come out. He is spot on, I am a big fan now.

Getting Ready for 2012!
http://garyjohnson2012.blogspot.com/

denningers is smart, but

He is smart, but in the past he has been nasty to RP. Denninger also says he contributed to the campaign of (gun-grabber amnesty) McCain.

reedr3v's picture

bump

.

This is a biggy. The FDIC

This is a biggy. The FDIC is probably going to have to go to the Treasury, which will have to got to the congress, which will have go to the Fed to print money.

Ĵīɣȩ Ɖåđşŏń

"Fully half the quotations found on the internet are either mis-attributed, or outright fabrications." - Abraham Lincoln

5 Banks failed this week

 
Freedom, Prosperity and Peace

 
Freedom, Prosperity and Peace

74 banks in 2009 failed so far.

Not a good sign.

more on this bank failing...

more on this bank failing... read the web below... there are no green shoots.. things are not improving all around us as the highly educated, enlightened, intellectualls on the daily paul want us to believe..

http://johngaltfla.com/

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Matthew 10:34 Think not that I am come to
send peace on earth: I came not to send peace,
but a sword.