bank failures

Bank Failure Friday: The Sunshine States Edition

There's quite a list tonight, so lets get on it.

RockBridge Commercial Bank of Atlanta, Georgia.
Independent Bankers' Bank of Springfield, Illinois.
New South Federal Savings Bank of Irondale, Alabama. [note: this one will cost the FDIC about $212 million]
Citizens State Bank of New Baltimore, Michigan.
Peoples First Community Bank of Panama City, Florida. [note: this one will cost the FDIC about $556 million]
Imperial Capital Bank of La Jolla, California. [note: this one will cost the FDIC about $619 million]

Why this is worse than the S&L Crisis

We passed the milestone of 100 bank failures in a year on Friday. That hasn't been done since 1992, and we still have a couple months to go.
However, that isn't the best way to measure the problem.

More banks have failed in other years. The post-war record was set in 1989 when 534 banks went under. That was at the peak of the savings-and-loan (S&L) crisis, which erupted in the late 1980s and continued in the early 1990s. This year has seen more failures than any since 1992, but another 75 banks must go under to overhaul that year’s total.

Place Yer Bets for Bank Failure Friday & Existing Home Sales

Calculated Risk has a sortable table of troubled banks on their website. This is not official, but from public sources. It's massive and appears to be a unique list to CR, so I just give the link for you to check it out.

So now we can place bets on which banks will be seized on our reoccuring series, Bank Failure Friday, which announced this week's bank failures almost like Pizza night.

Then, on home sales. The National Association of Realtors has released their monthly statistics.

Bank Failure Friday: Late Edition

Five more banks failed on Friday, which isn't really new.

Union Bank, National Association of Gilbert, Arizona
Community Bank of Arizona of Phoenix, Arizona
Community Bank of Nevada of Las Vegas, Nevada
Dwelling House Savings and Loan Association of Pittsburgh, Pennsylvania

These are all small to medium sized banks and nothing to worry too much about.
However, there was one bank that is an exception to this rule - Colonial Bank of Montgomery, Alabama.

As of June 30, 2009, Colonial Bank had total assets of $25 billion and total deposits of approximately $20 billion...

FDIC Chairman: 500 bank failures to come

We've seen 69 bank failures so far this year. That's nothing compared to what we are going to see in the coming months.

FDIC Chairman Sheila Bair is predicting that the bank failure rate will increase tenfold, according to a U.S. Senator.

Bair said up to 500 more banks could fail, Sen. Jim Bunning, R-Ky, said in a meeting, reported Dow Jones Newswires.

That would put the current crisis close to the level achieved during the late-1980s savings and loan crisis, when 745 thrifts were shut.

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