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Bank Failure Friday 1-29-10 (6)

Community Bank and Trust Cornelia GA
Marshall Bank, N.A. Hallock MN
Florida Community Bank Immokalee FL
First National Bank of Georgia Carrollton GA
American Marine Bank Bainbridge Island WA
First Regional Bank Los Angeles CA


*Edited to add 2 more.

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don't forget the 1 last night

don't forget the 1 last night ..

“Defiance of God’s Law will eventually bring havoc to a society.” - Dr. Ron Paul

3 banks in New York, Florida,

3 banks in New York, Florida, Louisiana; making 30 closures this year


Trust in God, but tie your camel tight.

"Socialism needs two legs on which to stand; a right and a left. While appearing to be in complete opposition to one another,they both march in the same direction." - Paul Proctor


CHARLOTTE, N.C. (AP) -- Regulators on Friday shuttered banks in Florida, Illinois, Maryland and Utah, boosting to 26 the number of bank failures in the U.S. so far this year following the 140 brought down in 2009 by mounting loan defaults and the recession.

Trust in God, but tie your camel tight.

"Socialism needs two legs on which to stand; a right and a left. While appearing to be in complete opposition to one another,they both march in the same direction." - Paul Proctor

But I thought that I remember

But I thought that I remember the FDIC announcing it was broke months ago... whatever happened with that? If banks are continuing to fail, shouldn't there be some sort of crisis involved here?

FDIC Fed Stealth Line of Credit ? Once 2009, Once Again 2010?

Don't know. Seems like a lot of people getting hurt. Seems FDIC is required tribute to Fed. Club dues for the membership into Banking. Tribute? Club dues? or like in Chicago, "You dirty rats! Dirty rats! Insurance. It's insurance.... (pause for dramatic effect; look straight into the camera). You know, it's like we protect you. Pay and nobody gets hurt. Ya see. Nobody gets hurt. (camera fade to black)"

Shelia Bear, Head of the FDIC works the system to keep it going. She ran out of legal tender a couple of times during this financial roller coaster ride. Magically more ones 111 and zeroes OOO appeared on her computer ledgers. There was a little news about it. Don't know how it is going. Just heard banks are passing the hat and calling it an insurance rate hike. You know boys, a little self insurance banks pay to insure.

Nice Article with a graph showing FDIC fund going below zero (under water) in early 2009. Not coming up for air.

Vox Day, World Net Daily
The FDIC is broke
Posted: August 24, 2009

© 2010

"In the first year of the Great Depression, unemployment reached 8.7 percent. The present unemployment rate is 9.4 percent. As I have shown previously in this column, bank failures in 2008 and 2009 are also worse than they were in 1930 and 1931 when measured in terms of bank deposits rather than the number of banks. Since that July column was published five weeks ago, 28 more banks have failed and driven the percentage of failed bank deposits up to one percent, which is more than I'd projected for all of 2009. At the current rate, bank failures over the last two years will equal 4.65 percent of total bank deposits, which is more than twice the two percent of failed deposits in 1930 and 1931.

Despite these widespread banking collapses, the American public has remained relatively quiescent, mostly because they believe their deposits are safely insured by the Federal Deposit Insurance Corporation. The problem is that the FDIC has now run out of money; the losses caused by the 81 bank failures this year has completely exhausted the Deposit Insurance Fund. At the beginning of 2008, the DIF had a balance of $52.8 billion. At the end of the year, during which 25 banks failed and caused $17.9 billion in FDIC-estimated losses, the fund was down to $17.3 billion."

See chart:

"... important to remember that estimated losses reported are merely estimates. An examination of the last five quarters shows that the net impact of a bank failure on the DIF balance is approximately twice the level of the estimated losses. For example, the $2.3 billion in estimated losses from the 21 bank failures reported during the first quarter further reduced the insurance fund by $4.3 billion, to $13 billion. What has happened since then can be seen in the chart below, which shows the FDIC's running fund balance with each of the subsequent 60 bank failures that occurred after March. The blue bars are based on estimated losses reported, while the red bars are based upon projected fund balance reductions, which over the last five quarters have been 1.94 times greater than the estimated losses.

While the FDIC does have the ability to borrow money from the U.S. Treasury, the chart shows that for the first time in its history, it has been forced to tap its $30 billion credit line. And while Congress can elect to intervene and bail out the FDIC as it bailed out the banks and other institutions, contrary to most depositors' assumptions, it is under no obligation to do so. An advisory opinion posted on the FDIC's own site makes it clear that the so-called federal guarantee is nothing more than non-binding reassurance made for the public's benefit."

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Friday, Feb. 26

FDIC shuts down banks in Nevada and Washington.
By STEPHEN BERNARD, AP Business Writer Stephen Bernard, Ap Business Writer – 45 mins ago

NEW YORK – Regulators shut down banks in Nevada and Washington on Friday, marking the 21st and 22nd failures this year of federally insured banks.
...

Maybe there's a more current thread? This one came up on search first.

Trust in God, but tie your camel tight.

"Socialism needs two legs on which to stand; a right and a left. While appearing to be in complete opposition to one another,they both march in the same direction." - Paul Proctor

watch around the July time

watch around the July time frame.. I bet this will accellerate..

“Defiance of God’s Law will eventually bring havoc to a society.” - Dr. Ron Paul


Why do you think July will be different?

15 in January, 2010

6 in January, 2009. But I keep hearing that we are coming out of our mess. Hmmm?



Freedom, Prosperity and Peace


Thanks, I edited my OP to reflect the new #. I usually wait until a couple hours after west coast closing time, but it seems the FDIC is taking longer to report the closings. Perhaps because more people are watching?

SteveMT's picture

Still six banks: biggest $2.18B, next $1+B: 15 so far in 2010.

next 2 about $800+M.

What a day...That is a lot of money!

They haven't even written the right headline yet. Any more out there?

Regulators shut banks in Calif., Fla., Ga., Minn.
Regulators shut down banks in Calif., Fla., Ga., Minn., totaling 14 bank failures in 2010
By Marcy Gordon, AP Business Writer , On Friday January 29, 2010, 9:24 pm

WASHINGTON (AP) -- Regulators shut down a big bank in California on Friday, along with two banks in Georgia and one each in Florida and Minnesota. That brought to 14 the number of bank failures so far in 2010 atop the 140 shuttered last year in the punishing economic climate.

The failure of Los Angeles-based First Regional Bank, with nearly $2.2 billion in assets and $1.9 billion in deposits, is expected to cost the federal deposit insurance fund $825.5 million.



There are 5 now.

There are 5 now.

Freedom, Prosperity and Peace

Wow, the great state of

Wow, the great state of Georgia has quite a few banks on that list. Certain liberal pundits have been encouraging people to take their money out of the big banks and put it into local banks and credit unions, but if these smaller banks are the ones failing, that doesn't sound like that great of an idea either.

If the little banks are failing and the big banks are being propped up and doomed to fail sometime in the future, are physical commodities the only safe place to store money anymore?

Credit Unions

They are not the same as "small, local banks" (which I have read these same pundits champion). Credit Unions are not for-profit, like banks are, so they don't charge and fee you to death like banks do, yet most of them provide all the same services. Loan rates are lower, as well.

If going this route, be sure to check the ratings of the CU as you would a bank.

I don't really know to much

I don't really know to much about credit unions because I always just kind of disregarded them (my family has always been BoA members). The thing that I like about BoA is that I can get my money in any city because they are everywhere without any ATM fees... if I was a member of a credit union would I be shit out of luck if I was in another city and needed some money?

No, you could still use ATM's

Each CU operates their ATM's on existing networks (SUM, Cirrus, etc...) My CU gives me a list of free ATM's in other states, but mostly I could look for the network sign on them if I needed to use them. Otherwise there would be a fee.