Bank Failure Friday: Another southern-fried edition

ebank from Atlanta, Georgia
First Coweta from Newnan, Georgia
CapitalSouth Bank from Birmingham, Alabama

And the grandaddy of the week, Guaranty Bank of Austin, Texas

As of June 30, 2009, Guaranty Bank had total assets of approximately $13 billion and total deposits of approximately $12 billion. ...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3 billion. ... Guaranty Bank is the 81st FDIC-insured institution to fail in the nation this year, and the second in Texas.

Guaranty Bank will cost the FDIC nearly as much as Colonial did last week.
In just the last two weeks, the FDIC has dropped an estimated $7 Billion that doesn't actually exist in the DIF. That amount is only certainly an understatement because FDIC estimates have been off by about 92% so far this year.

Meanwhile, Meredith Whitney predicts more than 300 bank failures to come.
That would be an improvement over FDIC's Bair's prediction, which is 500.

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it would be useful

to compare bank failure fridays, just the failed banks to the # of failed S&Ls during the 1980's.

It's like this is so common, it doesn't even get much public attention.

A good chart

the thing about these banks

they are failing off of a shadow banking system, derivatives, fictional "financial products", etc..

these banks are failing because the people they make loans to are failing.

In my mind this is more significant in a lot of ways...

I am really starting to believe that this time....they have damaged the middle class so badly, nothing is coming back as is currently being predicted, that we have reached the tipping point where the sucking of the middle class dry will not allow the global economy to return by feeding off of the "american consumer".