Thread: 2009 Bank Failures

Compared to the Great Depression, the current downturn doesn't look so bad for banks--

bank.jpg

But it is hard to tell. In those days, most of the banks were very small, in one or two towns. Today, the banks cover entire states, and regions, with dozens or hundreds of branches.

And, we did learn some things from that era and we injected huge taxpayer intervention $$$$ before the "rush" on banks began.

And our official rate of unemployment today is 9.7% .

Bad, but still a long way from the 1930's numbers.

gd-unemployment.jpg

Bank failure Friday, place your bets!

Originally Posted by James48843

And our official rate of unemployment today is 9.7% .

Bad, but still a long way from the 1930's numbers.

gd-unemployment.jpg

Some claim the real rate is closer to 16% because they, the gov., changed the reporting criteria since then. One item is part time workers are counted a employed. BLS has skewed the numbers over the years.

1930's had the double whammy of the Dust Bowl affecting Agriculture and the Manufacturing and Services sectors affected by the Crash. We don't have people getting in line on a large scale basis for food, going into restaurants and eating the ketchup, and willing to do any job including very dangerous work on dams and ditch digging.

That said, it's not happy day today either.....

It's FRIDAY!

BANK CLOSING DAY!!

TWO MORE TODAY!!!


Two more down: Bank failure tally hits 91

Regulators close banks in Illinois and Minnesota at a cost of more than $1.72 billion to the FDIC.




By Ben Rooney, CNNMoney.com staff reporter
Last Updated: September 11, 2009: 8:17 PM ET


Where the banks are failing
Bank failures and foreclosures keep mounting View map

DID YOUR BANK FAIL?

• For more information visit www.fdic.gov
• Don’t panic – your savings are insured
• Keep paying your loans – the terms remain the same.
• The FDIC will notify you by mail about your accounts/loans.
• Contact the FDIC with any questions until further notice
• If your bank is purchased, you will be contacted by your new bank.

NEW YORK (CNNMoney.com) -- Regulators closed one large bank in Illinois and one small community bank in Minnesota on Friday, pushing the total number of failures this year to 91, according to the Federal Deposit Insurance Corp.

Customers of the banks, however, are protected. The FDIC, which has insured bank deposits since the Great Depression, covers each customer account up to $250,000.

In Illinois, 16 banks have failed so far this year, including Chicago-based Corus Bank, which was closed by the Office of the Comptroller of the Currency on Friday.

In Minnesota, Brickwell Community Bank, which operated one branch in Woodbury, was closed by the state's Department of Commerce.

More: http://money.cnn.com/2009/09/11/news...ion=2009091120

Regulators seize construction lender Corus Bank

Regulators close major Chicago-based commercial real estate lender; 91 bank failures this year



CHARLOTTE, North Carolina (AP) -- Federal regulators on Friday said they seized Corus Bancshares Inc., a major Chicago-based lender to condominium, office and hotel projects, adding it to the long list of banks that have succumbed this year to the recession and waves of loan defaults.

The Federal Deposit Insurance Corp. took over Corus Bank, which had $7 billion in total assets, and its deposits. The deposits will be assumed by MB Financial Inc., which is also based in Chicago.
Corus Bank's 11 branches will open on their next normally scheduled business day as branches of MB Financial Bank. Regular deposit accounts are insured up to $250,000.
The closure of Corus Bank, one of the largest banks to fail this year, will cost the FDIC $1.7 billion.

more at link............

http://finance.yahoo.com/news/Regula...n&asset=&ccode=

Jinks, you owe me a Coke with Crown!

While you were sleeping, one more bit the dust.

Sept. 11, 2009, 11:41 p.m. EDT
3 more bank failures bring 2009 total to 92

Explore related topics

By John Letzing, MarketWatch


SAN FRANCISCO (MarketWatch) -- Regulators closed three more banks Friday, bringing the 2009 total to 92.

Closings announced by the Federal Deposit Insurance Corp.:

• Chicago-based Corus Bank, /quotes/comstock/15*!cors/quotes/nls/cors (CORS 0.26, -0.07, -21.26%) which had $7 billion in assets and $7 billion in deposits as of June 30, the FDIC said. The bank's deposits have been assumed by MB Financial Bank, the FDIC added. MB Financial /quotes/comstock/15*!mbfi/quotes/nls/mbfi (MBFI 17.03, +0.52, +3.15%) will pay the FDIC a premium of 0.2% to assume all of the failed bank's deposits, and has agreed to purchase roughly $3 billion of its assets, "comprised mainly of cash and marketable securities," the regulator said. Reports of Corus Bank's failure had surfaced earlier Friday. The Corus failure will cost the federal deposit-insurance fund $1.7 billion.
• Venture Bank, Lacey, Wash., which as of July 28 had total assets of $970 million and total deposits of $903 million according to the FDIC. The FDIC said First-Citizens Bank & Trust Co., Raleigh, N.C., will assume all of the deposits of Venture Bank; will buy $874 million of the assets and entered into a share-loss transaction for $715 million of the assets. The FDIC said it will retain the remaining assets for later disposition. It estimated the cost to the deposit insurance fund at $298 million. Venture Bank, based in an Olympia suburb, is the third in Washington to fail this year and the first since Westsound Bank in Bremerton on May 8.
• Brickwell Community Bank, Woodbury, Minn., which had $72 million in assets and $63 million in deposits as of July 24, according to the FDIC. Its deposits have been assumed by Mitchell, S.D.-based CorTrust Bank. Brickwell, based in a Minneapolis-St. Paul suburb, is the third bank to fail in Minnesota this year and will cost the deposit-insurance fund $22 million.

The closures have cost the federal deposit-insurance fund more than $1.7 billion as the credit crisis continues claiming victims.
John Letzing is a MarketWatch reporter based in San Francisco.

http://www.marketwatch.com/story/cor...-91-2009-09-11

It's FRIDAY!

BANK CLOSING DAY!

================================================== =

First Citizens Bank and Trust Company, Incorporated, Columbia, South Carolina, Assumes All of the Deposits of Georgian Bank, Atlanta, Georgia

FOR IMMEDIATE RELEASE
September 25, 2009

Media Contact:
LaJuan Williams-Dickerson
Office (202) 898-3876
Email: lwilliams-dickerson@fdic.gov

Georgian Bank, Atlanta, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Citizens Bank and Trust Company, Inc., Columbia, South Carolina, to assume all of the deposits of Georgian Bank.

The five branches of Georgian Bank will reopen on Monday as branches of First Citizens Bank. Depositors of Georgian Bank will automatically become depositors of First Citizens Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until First Citizens Bank can fully integrate the deposit records of Georgian Bank.

This evening and over the weekend, depositors of Georgian Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of July 24, 2009, Georgian Bank had total assets of $2 billion and total deposits of approximately $2 billion. In addition to assuming all of the deposits of the failed bank, First Citizens Bank agreed to purchase essentially all of the assets.

The FDIC and First Citizens Bank entered into a loss-share transaction on approximately $2 billion of Georgian Bank's assets. First Citizens Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/...are/index.html.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-405-1498. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/.../georgian.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $892 million. First Citizens Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. Georgian Bank is the 95th FDIC-insured institution to fail in the nation this year, and the nineteenth in Georgia. The last FDIC-insured institution closed in the state was First Coweta, Newnan, on August 21, 2009.

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Source: The FDIC: http://www.fdic.gov/news/news/press/2009/pr09177.html