Regulators shut 5 banks; 45 failures this year [FDIC Friday]

AP ^ | 2009-06-27 | Stephen Bernard & Marcy Gordon

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NEW YORK (AP) - Regulators on Friday shut down five small banks, boosting to 45 the number of failures this year of federally insured banks. More are expected to succumb in the prolonged recession.

The Federal Deposit Insurance Corp. was appointed receiver of the failed banks: Community Bank of West Georgia, based in Villa Rica, Ga.; Neighborhood Community Bank, located in Newnan, Ga.; Horizon Bank in Pine City, Minn.; MetroPacific Bank in Irvine, Calif.; and Mirae Bank in Los Angeles.

Community Bank of West Georgia had $199.4 million in assets and $182.5 million in deposits as of May 15. Neighborhood Community Bank had $221.6 million in assets and $191.3 million in deposits as of March 31. Horizon Bank had $87.6 million in assets and $69.4 million in deposits as of March 31. MetroPacific Bank had $80 million in assets and deposits of $73 million as of June 8. Mirae Bank had $456 million in assets and $362 million in deposits as of May 29.

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Failed Bank Information for Mirae Bank, Los Angeles, CA

Failed Bank Information for MetroPacific Bank, Irvine, CA

Failed Bank Information for Horizon Bank, Pine City, MN

Failed Bank Information for Neighborhood Community Bank, Newnan, GA

Failed Bank Information for Community Bank of West Georgia, Villa Rica, GA

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*Ping!*

[VicVega]

Very interesting. I read a chart on another thead about banks that were in trouble. At least two of the banks on that chart are the ones that were seized on Friday.

Have to give credit to PythonicCow who originally posted the chart

The chart was written by Chris Brunner and appeared, per PythonicCow on the Lew Rocwell blog.

Just look at the chart and make sure your bank is not on the high Texas ratio list.

Good work PythonicCow, hope you are still around.

http://sanityisland.us/bank_texas_ratios.html

[PAR35]

Looks like one was a payout. At least they made arrangements for the welfare payments.

[darth]

Went to Chase Bank this AM to cash my paycheck. They told me I could only take out $300 in cash. Will close my accounts there on Monday after 4 years of using them.

Fellow Freepers, we have been experiencing a silent run on banks for a while. I have a feeling that it could turn into a real run on the banks.

Be careful out there.

[GOPJ]

OMG - Chase is not a small bank in rural Georgia...

[meyer]

$300 is the limit on my bank for withdrawels at the machine, primarily because the machine only holds so much money. However, that is a daily amount so I could concievable withdraw $300 per day until the account runs dry.

Anyway, with respect to the coming inflation, I still recommend that one keep a little cash (I won't define "a little") on hand at home, in a safe place. You want to be prepared to continue dealing with life's daily expenses regardless of the condition of your bank.

[rabscuttle385]

JPM Chase or Chevy Chase? [The latter was bought out by Cap One.] If it’s JPM Chase, then the problems are worse than I thought.

[meyer]

Oh, just have to add - could be that Chase is leery of your employer's checks.

One other thing - the $300 limit I mentioned in my post is for a machine withdrawel only - if I desire more cash for whatever reason, I can go inside and withdraw it through the service of a teller.

[PAR35]

Yes, on that one, I’d be as concerned about my employer as I would be about my bank.

Check the availability of funds rules - it could be that they were only required to let you have $100 when you presented the paycheck. If the paycheck was ‘non-local’, they can wait 5 days to give you the rest of your money.

Here’s a link:

http://www.federalreserve.gov/Pubs/regcc/regcc.htm

[darth]

JPM Chase.