Saturday, April 25, 2009

FDIC Friday Brings Four More Bank Closings

It's time to update the FDIC bank closings list. You might recall me writing about it two weeks ago in "FDIC Friday and Glimmers of Hope?" when the number of banks closed by the FDIC in 2009 was only 23 total.

Well, we have now officially set a new record -- passing the entire year of 2008 -- the number of bank closings by the FDIC has risen to 29 banks closed thus far in 2009.

Four more banks were closed by the FDIC yesterday, as follows:

- First Bank of Idaho, Ketchum, ID
- First Bank of Beverly Hills, Calabasas, CA
- Michigan Heritage Bank, Farmington Hills, MI
- American Southern Bank, Kennesaw, GA

And here is the running "tickertape" on the parade of bank closings:

Total Bank failures in 2005: 0
Total Bank failures in 2006: 0
Total Bank failures in 2007: 3
Total Bank failures in 2008: 25
Total Bank failures (as of April 24) in 2009: a whopping 29 banks

The year isn't over yet, folks. We still have another 8 months to go... that's another 35 FDIC Fridays to go... 34 if you don't count Christmas Day.

Aren't 'ya just super duper relieved that all them thar 18 banks the Feds stress tested turned out so well?

Uh, yeah, okay.

The Federal Governments "chosen few" -- let's call them The Golden Ones -- represent only .002% of all banks here in the USA.

If that isn't enough to make you shudder, new info dug up by Bloomberg might:
April 24 (Bloomberg) -- The Federal Reserve took on more than $74 billion in subprime mortgages, depreciating commercial leases and other assets after Bear Stearns Cos. and American International Group Inc. collapsed.

In its biggest disclosure of the securities accepted to stabilize capital markets, the Fed said yesterday it had unrealized losses of $9.6 billion on the assets as of Dec. 31. The bonds, swaps and notes were taken in from Bear Stearns, once the fifth-biggest Wall Street firm by capitalization, and AIG, which had been the world’s largest insurer. [link to full story]
Bloomberg obtained the details after they sued Nov. 7 under the Freedom of Information Act on behalf of its Bloomberg News unit. QUOTE: The public is an "involuntary investor" in the nation's banks, according to an April 15 court filing by Bloomberg.


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