Posted on 10/16/2009 7:00:13 PM PDT by Steelfish
Calif. Bank Becomes 99th in US to Be Shut in 2009
THE ASSOCIATED PRESS October 16, 2009
NEW YORK (AP) -- Regulators shut down San Joaquin Bank in California on Friday, marking the 99th failure this year of a federally insured bank.
The Federal Deposit Insurance Corp. was appointed receiver of San Joaquin Bank, based in Bakersfield, Calif. It had $775 million in assets and $631 million in deposits as of Sept. 29.
The FDIC said the bank's deposits will be assumed by Citizens Business Bank, based in Ontario, Calif. Its five branches will reopen Monday as branches of Citizens Business Bank.
San Joaquin Bank's failure is expected to cost the FDIC's insurance fund $103 million.
Depositors' money is not in danger. The FDIC is backed by the government, and deposits are guaranteed up to $250,000 per account. But the deposit insurance fund has fallen into the red. The FDIC board recently proposed to have U.S. banks prepay about $45 billion of their insurance premiums -- three years' worth.
That plan isn't a long-term remedy for the depleted fund. But it would spare ailing banks the immediate cost of an alternative idea: paying an emergency fee for the second time this year. And the FDIC still has billions in loss reserves apart from the insurance fund.
The 99 bank failures this year compare with 25 last year and three in 2007. It's the highest number in a year since 1992 during the savings-and-loan crisis, when 120 institutions collapsed. Closures peaked during that crisis in 1989, when 534 banks were shuttered.
The most severe financial crisis since the 1930s has hit banks large and small. With unemployment rising, consumer spending slack and businesses shuttered, experts say up to 400 more banks could fail in the next couple of years.
(Excerpt) Read more at nytimes.com ...
Mmmm..Mmmmm..Mmmmmmmmm.
So how’s that “hope” and “change” working out?
Since two deadhead senators, Box-of-Rocks & Fineswine,have killed 10,000’s of acres of Central Valley farm land in order to save a minnow you can expect more of these!
Does anyone know of a list of “shakey” banks that may go under? How safe are Wells Fargo, Bank of America and Chase? I wonder how safe my CD’s are. They’re barely earning any interest.
“and we had a socialist in the WH”
IMO, Obama makes FDR look like Reagan....
Soooo...I guess that many of us could possibly kissing our eBay Pay Pal accounts good-bye?
>>> Does anyone know of a list of “shakey” banks that may go under? How safe are Wells Fargo, Bank of America and Chase? <<<
Here’s a couple of lists..
http://www.calculatedriskblog.com/
http://www.bankrate.com/rates/safe-sound/bank-ratings-search.aspx?t=cb
Hope this helps..
0ops! Where did my “be” go?
The FDIC maintains a list of suspect banks, but the list isn’t public information. They’re worried (rightly so) that making the list public would spark a run on those banks.
If your CD’s are with an FDIC insured bank and you have less than $250,000 at that bank, you are covered. Even if the bank failed, you would get your money.
If in doubt, call your bank and confirm that your CD is FDIC insured.
you may as well get your money in an FDIC insured account. you arent going to make anything on interest while helicopter ben is in office
i was under the impression that CDs werent covered under the FDIC. definitely call the bank (like javachip says) and make sure one way or the other
I haven’t been keeping track, but does anyone know whether any TARP banks have died yet?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.