2 more banks failed ... 19 in total, so far in 2008

[Berlin]

Regulators close down Franklin Bank, a Houston bank with $5.1 billion in assets, and Security Pacific Bank of California, with assets of $561 million, raising the tally of failed banks this year to 19.

http://money.cnn.com/2008/11/07/news/companies/bank_failure/index.htm?section=money_latest

NEW YORK (CNNMoney.com) -- The tally of failed banks in 2008 rose to 19 as the government announced that a Texas and a California bank had been shuttered Friday night.

Franklin Bank, a Houston, Texas-based bank and Security Pacific Bank, a Los Angeles, Calif.-based bank were shut down by state regulators Friday, marking the 18th and 19th bank failures this year.

Franklin Bank (FBTX) had total assets of $5.1 billion and total deposits of $3.7 billion as of Sept. 30, 2008, according to a statement on the Federal Deposit Insurance Corp.'s Web site.

Security Pacific Bank had total assets of $561.1 million and total deposits of $450.1 million as of October 17, 2008, according to the FDIC.

Prosperity Bank (PRSP), based in El Campo, Texas, will assume all of the deposits of the failed Texas bank, including those that exceed the insurance limit and brokered accounts. Depositors of the failed bank will automatically become depositors of Prosperity.

In addition to taking over the deposits of the failed Franklin Bank, Prosperity will purchase $850 million of assets. The FDIC will retain the remaining assets to dispose of later.

Pacific Western Bank of Los Angeles will assume all of the deposits of Security Pacific Bank and will purchase approximately $51.8 million of the assets. The FDIC will hold on to the remaining assets to dispose of later.

In Friday's announcement about Franklin Bank, the FDIC said that the cost of its failure to the Deposit Insurance Fund will be between $1.4 billion and $1.6 billion.

Meanwhile, Security Pacific's failure, the third in California this year, will cost the FDIC $210 million. The FDIC said that for both banks, acquisition of their deposits was the least costly resolution.

Smaller regional banks have been under pressure as the financial crisis continues to take its toll.

 

[onthebottom]

Wasn't the prediction 150?

OTB

 

[train]

There was an actual bank (as opposed to a credit union) with only $560 million in assets ?

 

[Berlin]

Wasn't the prediction 150?

OTB

150 .... by when ?

Haven't read or heard anything as specific as that, pre and post bail out. Where did you get that number anyway ?


BTW Circut City just filed for chap 11.

 

[landscaper]

American banking is different from ours, after the depresion in the thirties laws came out that were supposed to protect the public. No bank could have more than a certain precentage of the business in a given area( 12% rings a bell). The idea being that if one dies not everyone gets killed along with it. The result was large numbers of small banks that served a specific area. The advantage was personal service, the disadvantage was there were so small big business could not use them. Most were fine untill they started with the subprime garbage now large numbers are in trouble quite a few through no fault of their own.

 

[Malibook]

Wasn't the prediction 150?

OTB

That prediction was probably based on the misguided belief that the US was a capitalist society.

Why not just let the incompetent idiots fail and the competent ones can pick up the pieces?

Instead the US government is forcing the competent people and companies to bail out the idiots.

 

[landscaper]

That prediction was probably based on the misguided belief that the US was a capitalist society.

Why not just let the incompetent idiots fail and the competent ones can pick up the pieces?

Instead the US government is forcing the competent people and companies to bail out the idiots.

In the perfect system in the states yes the losers would just die and be swallowed. Unfortunatley this time out it would destry the american and world economy for a long time so the taxpayers have to pay and pay and pay....

The silly thing is we( Canada ) are going to have to match what ever payouts the americans make to industry just to keep ours going.

 

[onthebottom]

There was an actual bank (as opposed to a credit union) with only $560 million in assets ?

There are banks with 50 and 100 million in assets.... crazy I know.

OTB

 

[onthebottom]

150 .... by when ?

Haven't read or heard anything as specific as that, pre and post bail out. Where did you get that number anyway ?


BTW Circut City just filed for chap 11.

By the end of 2008

One of the notorious Gyaos predictions.

OTB

 

[WoodPeckr]

Wasn't the prediction 150?

OTB

Dubya sure is delivering real economic performance, eh bottie!....

 

[onthebottom]

Dubya sure is delivering real economic performance, eh bottie!....

One could argue: http://www.indexmundi.com/g/g.aspx?c=us&v=67

OTB

 

[WoodPeckr]

One could argue: http://www.indexmundi.com/g/g.aspx?c=us&v=67

OTB

LOL!!!!
Then WHY, pray tell, are we in the mess we are in today after 8 yrs of Dubyanomics?!?!..