Failure Friday, October 30, 2009

Posted by Ray on October 30, 2009 under Main | Be the First to Comment

Tonight was a special night with a large bank holding company failing which caused 9 banks to fail across various states. Essentially it counts as a total of 9 individual failures bringing the total US bank failures up to 115. It is insane to believe that the FDIC’s additional $45B in emergency banking fee levies, which we will ultimately pay for, will be enough to cover all the failures this year and into 2010.

US Bank acquired the failed institutions, unfortunately only the grand totals were given as the assets were not broken out by the bank itself, here is tonight’s list:

Bank	State	Deposits	Assets
North Houston Bank	TX	N/A	N/A
Madisonville State Bank	TX	N/A	N/A
Citizens National Bank	TX	N/A	N/A
Park National Bank	IL	N/A	N/A
Pacific National Bank	CA	N/A	N/A
California National Bank	CA	N/A	N/A
San Diego National Bank	CA	N/A	N/A
Community Bank of Lemont	IL	N/A	N/A
Total	9 Closures	$19.4B	$15.4B

FDIC estimated losses:

Estimated Immediate Losses	$2.5B
Loss-share Agreement	$14.4B
Total Estimated Losses	$16.9B

With anymore Friday’s like this I would expect to see more special levies in the very near future. I am surprised there was not another special YouTube video from Sheila tonight telling us everything is just fine in the banking industry.