Posted on 08/15/2009 6:08:58 AM PDT by SeekAndFind
AN FRANCISCO (MarketWatch) -- Colonial BancGroup Inc. became the largest bank failure this year after the Federal Deposit Insurance Corporation seized the struggling Alabama-based lender Friday and sold it to BB&T Corp.
Late Friday, the FDIC announced four other banks had been closed: Community Bank of Las Vegas and its Arizona subsidiary, Community Bank of Arizona; Union Bank, Gilbert, Ariz; and Dwelling House Savings and Loan, Pittsburgh.
The Colonial BancGroup deal will knock roughly $2.8 billion off a pool of money, known as the Deposit Insurance Fund, which the FDIC maintains to guarantee bank customer deposits.
BB&T /quotes/comstock/13*!bbt/quotes/nls/bbt (BBT 28.23, +2.43, +9.42%) agreed to assume all of Colonial's deposits, which totaled about $20 billion at the end of June, the FDIC said. Depositors of Colonial will automatically become depositors of BB&T and customers can continue accessing their money by writing checks or using ATMs and debit cards, the regulator stressed.
Colonial had $25 billion in assets at the end of June. That makes it the largest bank failure this year, exceeding the collapse of Florida's BankUnited Financial /quotes/comstock/11i!bkunq (BKUNQ 0.30, -0.01, -1.64%) , which had less than $13 billion in assets
(Excerpt) Read more at marketwatch.com ...
Another Friday...another bank closing.
Convenient, isn’t it?
So another bank failure, unemployment continues to outstrip any alleged newly created jobs, foreclosures continue unabated, the housing maket remains in the toilet (home prices sliding ever more downward), the deficit tripled in first six months of the Onada administration and government take over of private sector companies.
Go Stimulus Package. Change I can believe in.
Yes, but not for the reason you think. Regulators take over banks on Fridays because they use the weekend to clean things up before the bank opens (under new management or whatever) on Monday.
The closures boosted to 77 the number of federally insured banks that have failed in 2009.
From:http://en.wikipedia.org/wiki/Savings_and_loan_crisis
The savings and loan crisis of the 1980s and 1990s (commonly referred to as the S&L crisis) was the failure of 745 savings and loan associations (S&Ls aka thrifts). An S&L association is a financial institution in the United States that accepts savings deposits and makes mortgage loans. The ultimate cost of the crisis is estimated to have totaled around $160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government—that is, the U.S. taxpayer, either directly or through charges on their savings and loan accounts[1]—which contributed to the large budget deficits of the early 1990s.
The main thing was the cost was a drop in the bucket, just about the cost of AIG salaries. LOL
I expect that the stock market will have falls this week. The recent rises have been sudden and unsustainable.
How old school of you. You appear to think that stock prices are driven by fundamentals. You should think of it more as a casino - and one with a rigged roulette wheel, at that.
My spies tell me that the number of failed banks will approach 900 by the end of 2009. We have a ways to go.
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