The conspiracy theorized U.S. bank holiday rumor for August-September (excluding Labor Day) is gaining legs with more evidence showing that it may become a possibility. Yesterday, Colonial Bank of Alabama with $26 billion in assets became the largest failed bank to date this year. There are also rumors that the FDIC may soon be insolvent, because the FDIC insurance fund only had $13 billion as of March 31, 2009.
Last month, FDIC Chairman Sheila Bair told Senator Bunning that up to 500 more banks may close this year in the United States. In other words, the Friday Night Feasts will continue.
Last month, FDIC Chairman Sheila Bair told Senator Bunning that up to 500 more banks may close this year in the United States. In other words, the Friday Night Feasts will continue.
By Jessica Holzer, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- Federal Deposit Insurance Corp. Chairman Sheila Bair believes up to 500 more banks could fail, a U.S. senator said Bair told him in a recent meeting.
"She told us that unless something dramatic happens, we could lose up to 500 more banks," Sen. Jim Bunning, R-Ky., said Thursday at a hearing of the Senate Banking Committee on the foreclosure crisis.
Bunning said Bair made the remarks in a recent meeting.
"That means that people who make mortgages in local places .... people that could really help in a foreclosure will not be there," Bunning said.
-By Jessica Holzer, Dow Jones Newswires; 202-862-9228; jessica.holzer@ dowjones.com
Source: NASDAQ
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