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Posted on 02/13/2009 5:31:00 PM PST by rabscuttle385
WASHINGTON, Feb 13 (Reuters) - U.S. bank regulators closed small banks in Florida, Illinois and Nebraska on Friday, bringing the number of bank failures to 12 so far this year.
The Federal Deposit Insurance Corp said Riverside Bank of the Gulf Coast had $539 million in assets and $424 million in deposits. Its failure is expected to cost the deposit insurance fund an estimated $201.5 million.
Riverside's deposits will be assumed by TIB Bank of Naples, Florida and Riverside's nine branches will reopen on Tuesday as branches of TIB.
Corn Belt Bank and Trust Co of Pittsfield, Illinois had $271.8 million in assets and $234.4 million in deposits, the FDIC said. The failure is expected to cost the FDIC deposit insurance fund an estimated $100 million.
Corn Belt Bank and Trust Co's deposits will be assumed by Carlinville National Bank of Carlinville, Illinois, and Corn Belt's two offices will reopen on Tuesday as branches of Carlinville National.
Sherman County Bank of Loup City, Nebraska, had $129.8 million in assets and $85.1 million in deposits, the FDIC said, a failure expected to cost the FDIC's insurance fund an estimated $28 million.
Heritage Bank of Wood River, Nebraska agreed to assume all of the deposits of Sherman County Bank, whose four branches will reopen on Tuesday as branches of Heritage Bank.
Monday is a federal holiday in the United States.
(Excerpt) Read more at reuters.com ...
Failed Bank Information for Corn Belt Bank and Trust Company, Pittsfield, Illinois
Failed Bank Information for Riverside Bank of the Gulf Coast, Cape Coral, Florida
Failed Bank Information for Sherman County Bank, Loup City, Nebraska
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“the deposit insurance fund”
that would be you.
If that ratio is any measure, then we have a ways to go yet. We will only have about 25% of the banks we have now in 5 to 10 years.
Motto: " Pick Your Banks Well"
The government is confiscating all of our banks. Our private property is next.
They really do think we are that stupid.
Soon it will be FDIC Monday thru Sunday.
and me, too.
I’ll stay with real deposit banks that concentrate on savings accounts, checking accounts and smaller projects done by
smaller local businesses. ...no derivative schemes or shady securities. The patient, meticulous, thoughtful and un-greedy might get you through the months and years ahead.
Banks that agree to participate in FDIC can be closed when they are deemed insolvent. They’ve been doing this for decades. There are a lot more shakey banks now than ever before.
The FDIC payout for these failures isn’t taxpayer money (yet).
The FDIC is funded by premiums from the banks, not tax dollars. At the end of Sep 08, the Deposit Insurance Fund had a balance of nearly $31.7 billion. That’s the most recent data I could find at the FDIC website.
There have been a number of additional bank failures since last Sep, but I don’t think there have been $31 billion worth.
I’m not sure what happens if the the DIF is depleted. I assume there is some provision for a Fed or Treasury loan, but I don’t know.
But, you’re right, we still pay for it. Even though it isn’t tax dollars, the premiums the banks pay to FDIC for deposit insurance could go towards higher interest rates on CDs, lower bank fees or additional dividends to shareholders. As long as you’d be comfortable banking without deposit insurance that is.
Any bank that isn’t solvent needs to be taken out and shot for the good of the depositors. With fractional lending there has to be some compliance with liquidity standards. And, the depositors are the ones who are being protected, not the shareholders.
With a name like that... I suspect this bank may have been destined to need a bit of help! Merged into Rust Belt Bank and Empty Vault Co.
This is just culling the herd. No big deal if these things are merged into bigger and better capitalized banks. FDIC will take a hit, but, that’s their job. Its all insurance premium money so far.
Yep. Shareholders elect a board and don’t bother to watch what they do. Board members go to the board meetings for the free food and usually don’t even understand what banks do. The Board hires the senior management and they loot the bank and lend money to lots of deadbeats who default and crater the bank. The FDIC (an insurance program) steps in, kicks out the management and merges the bank into the next victim, I mean... a stronger bank. Then they take one chair out of the circle and start the music again and everyone begins again to walk around the chairs in a circle.
I would have loved to be a fly on the wall and watched the Morgan Stanley salesman sell CDO instruments to the officers of Corn Pone State Bank & Trust Co. Or, UBS, for that matter!!!
Whoa, there is a Riverside Bank on the east coast of Florida as well. This is gonna freak out their depositors.
Thanks for the ping.
Looks like one in Central Fla (Winter Park) as well.
Yes, there appear to have been 3 (now 2) Riverside banks in Florida - two with state charters, one with a national charter. Of course, there used to be dozens of different ‘First National Bank’s in most states.
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