Posted on 04/17/2009 5:16:05 PM PDT by IDRATHERNOT
As of March 20, 2009, American Sterling Bank had total assets of approximately $181 million and total deposits of $171.9 million. ...
The FDIC estimates that the cost to the Deposit Insurance Fund will be $42 million.
(Excerpt) Read more at fdic.gov ...
Still aren’t near the S&L scandal bank failures...
S&L scandal cost a total of $160B across 700-ish thrifts.
Between TARP, TALF, PPIP, and the 50-ish bank failures since 2007, we have spent about $2.5T.
You tell me which is worse?
“The 1980s and early 1990s mark a pe
riod of financial distress unparalleled in
U.S. history since the Great Depression.
From 1980-1992, 4,695 federally insured
institutions with assets of $665 billion
failed and were resolved at an estimated
present-value cost of $165 billion ( Barth
and Jahera, 1994). Over the period, 1,142
savings and loans (S&Ls) failed. Resolving
these savings and loans cost $127 billion.
Additionally, resolving 1,503 failed banks
cost $37 billion, and resolving 2,050 failed
credit unions cost $452 million. S&Ls ac
count for slightly over 76% of the $165 bil
lion resolution costs. Banks account for ap
proximately 22%. The S&L industry be
havior during this time period under
standably continues to generate great in
terest among economists.”
http://www.questia.com/googleScholar.qst;jsessionid=JppLnytHB7prmfvG84rBnSnbkyjDnQj1Y9GmyQjnnzNygWzMDkhf!-1137335696!-665261309?docId=96417257
This 13 minute video shows you just how the FDIC secretly close a bank and what happens next.
http://www.cbsnews.com/stories/2009/03/06/60minutes/main4848047.shtml?tag=topHome;topStories
I can’t imagine being a manager and having this surprise on a Friday night.
Our response this time around has been worse (I say should have hung em out to dry), but there were more failures in S&L
I was speaking of federal insured costs...$160B.
I guess stretching the entire crisis for 12 years is a leap.
Even adding up all the costs (some born by states) you provided, you have $350B.
We have incurred costs in the TRILLIONS in less than +6 months+ - not 12 years - to fix the banking industry.
Throw another $42M on the pile.
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