Bank Failure Friday - Tally now 115

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This week's Bank Failure Friday are a freaky horror. 9 banks in major holding company fail.

That's 9, the largest number in one bank failure Friday.

Nine subsidiaries of FBOP Corp., a multistate holding company that included California National Bank of Los Angeles, succumbed Friday to the nationwide banking crisis, bringing to 115 the number of banks closed by regulators so far this year.

The Federal Deposit Insurance Corp. said the nine banks in California, Illinois, Texas and Arizona that made up the privately held FBOP were taken over by U.S. Bancorp (USB, Fortune 500) of Minneapolis. The banks, which had combined assets of $19.4 billion and deposits of $15.4 billion, will open Saturday as U.S. Bank branches.

The nine banks are Bank USA N.A. of Phoenix, California National Bank of Los Angeles, San Diego National Bank of San Diego, Pacific National Bank of San Francisco, Park National Bank of Chicago, Community Bank of Lemont in Lemont, Ill., North Houston Bank in Houston, Madisonville State Bank in Madisonville, Texas, and Citizens National Bank of Teague, Texas.

Together, the nine banks had 153 offices.

A whopper.

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Snapshot of Bank Failures

Check all the failed bank list and snapshot at
http://portalseven.com/banks/index.jsp

What do you think of a bank holiday?

It's probably ridicules to mention it because it wouldn't happen in a million years because the lack of courage. But a bank holiday could be used to assess the magnitude or the extent of insolvency in the banking system. And possible address any problems sooner rather than this lingering zombie state.

I know - it's crazy even to mention it because everything is just fine.

RebelCapitalist.com - Financial Information for the Rest of Us.

RebelCapitalist.com - Financial Information for the Rest of Us.

I think TARP funds should have been used

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to save some of these local and regional banks. This is just a select few, of course the ones responsible for this mess, get saved while the smaller ones go under.

Talk about nice way to remove competition and choice.

As far as a bank holiday goes, well that was done when they had some reforms to implement. Today we have lobbyists and watered down or make it worse reforms in the queue.

A real Halloween Scare

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It's worth noting that CIT isn't on that list, eventhough it might declare bankruptcy as soon as Sunday.

$19 Billion is nothing to sneeze at. I don't see an estimate of how much this will cost the taxpayers. That information is usually in the FDIC new release.

$2.3 Billion bailout down the drain

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CIT just filed for bankruptcy.

CIT listed $71 billion in assets and $64.9 billion in debt in a Chapter 11 filing in U.S. Bankruptcy Court in Manhattan. The U.S. Treasury Department said the government probably won’t recover much, if any, of the $2.3 billion in taxpayer money that went to CIT.
CIT, which reported $3 billion of losses in the past eight quarters, received $2.3 billion from the U.S. Treasury on Dec. 31 when it purchased preferred stock and warrants. The company wasn’t given access to the FDIC’s debt-guarantee program.
“We will be following developments very closely with an eye towards protecting taxpayers during the bankruptcy proceeding,” Treasury spokesman Andrew Williams said today in an e-mailed statement. “But as the company’s disclosure on the prepackaged bankruptcy makes clear, with debt holders receiving less than face value of their instruments, recovery to preferred and common equity holders will be minimal.”

CIT is the 5th largest bankruptcy in history.

I think this needs to be an Instapopulist

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seems like the CRE implosion is upon us.