The FDIC Friday Night Feast continues as the FDIC devoured five (5) more banks. That is 77 banks failures since January 1, 2009. Further, the FDIC has basically banned any new banks since December, 2008 (including healthy new banks).
Colonial Bank also happens to be the biggest bank to fail this year with 346 branches in Alabama, Florida, Georgia, Nevada and Texas. Please note that this below quoted story was released before Colonial was seized.
I guess it should not be a surprise that Colonial was about to get the axe, because it was raided by federal authorities a couple of weeks ago.
There is only $13 billion left in the FDIC insurance fund as of March 31, 2009. How much money is in there right now considering the number of banks that have closed since March 31, 2009. When will the new insurance fund balance amounts be released? I would imagine that might be the trigger for the predicted August 26 bank holiday if the insurance fund cannot cover future failed banks. The signs are pointing to this possibility, because the FDIC expects to close 500 more banks this year. Nevertheless, the FDIC is still putting on the confident face saying that it has been able to cover all losses to date and that there is no need to worry.
Colonial Bank also happens to be the biggest bank to fail this year with 346 branches in Alabama, Florida, Georgia, Nevada and Texas. Please note that this below quoted story was released before Colonial was seized.
Colonial has more than $26 billion in assets. If it's shut down by the FDIC, it would be the largest bank failure so far this year, exceeding the collapse of Florida's BankUnited Financial (BKUNQ 0.30, -0.01, -1.64%) , which had less than $13 billion in assets. See full story.
I guess it should not be a surprise that Colonial was about to get the axe, because it was raided by federal authorities a couple of weeks ago.
There is only $13 billion left in the FDIC insurance fund as of March 31, 2009. How much money is in there right now considering the number of banks that have closed since March 31, 2009. When will the new insurance fund balance amounts be released? I would imagine that might be the trigger for the predicted August 26 bank holiday if the insurance fund cannot cover future failed banks. The signs are pointing to this possibility, because the FDIC expects to close 500 more banks this year. Nevertheless, the FDIC is still putting on the confident face saying that it has been able to cover all losses to date and that there is no need to worry.
Trust fund hit: The failure of Colonial is another blow to the FDIC trust fund, which has had to cover 77 bank failures so far in 2009 -- including four more late Friday.The fund took a $35.1 billion hit in 2008, and an additional $4.3 billion decline in the first quarter of this year, leaving it with assets of only $13 billion as of March 31. But most of last year's decline was due to $25 billion the agency set aside to cover future losses.
"The past 18 months have been a very trying period in the financial services arena," said FDIC Chairman Sheila Bair, in the Colonial failure release. "Our industry funded reserves have covered all losses to date. In fact, losses from today's failures are lower than had been projected.
Bank Name | City | State | CERT # | Closing Date | Updated Date |
|---|---|---|---|---|---|
| Community Bank of Nevada | Las Vegas | NV | 34043 | August 14, 2009 | August 14, 2009 |
| Community Bank of Arizona | Phoenix | AZ | 57645 | August 14, 2009 | August 14, 2009 |
| Union Bank, National Association | Gilbert | AZ | 34485 | August 14, 2009 | August 14, 2009 |
| Colonial Bank | Montgomery | AL | 9609 | August 14, 2009 | August 14, 2009 |
| Dwelling House Savings and Loan Association | Pittsburgh | PA | 31559 | August 14, 2009 | August 14, 2009 |
For the full list of all 77 failed banks, click HERE.
Source: FDIC ; Bloomberg; Market Watch; CNN
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