It's Bank Failure Friday again
The latest failure? Haven Trust Bank of Duluth, Georgia. The FDIC arranged the purchase of Haven's deposits (both insured and those above the insurance limit) by Branch Banking & Trust (BBT). Haven had four branches, assets of $572 million, and deposits of $515 million. BBT is only buying $55 million of Haven's assets, leaving the FDIC stuck with the rest. The FDIC estimates it will take a $200 million hit to the Deposit Insurance Fund resolving the failure. Haven is the 24th bank failure this year.
Shortly thereafter, we also got failure #25. Sanderson State Bank of Sanderson, Texas, failed, with the FDIC arranging for the assumption of all deposits by Pecos County State Bank of Fort Stockton, Texas. Sanderson is small-time -- a one branch operation with just $37 million in assets and $27.9 million in deposits. Pecos is only buying $3.8 million of Sanderson's assets. Total DIF costs to the FDIC: Only an estimated $12.5 million.
Shortly thereafter, we also got failure #25. Sanderson State Bank of Sanderson, Texas, failed, with the FDIC arranging for the assumption of all deposits by Pecos County State Bank of Fort Stockton, Texas. Sanderson is small-time -- a one branch operation with just $37 million in assets and $27.9 million in deposits. Pecos is only buying $3.8 million of Sanderson's assets. Total DIF costs to the FDIC: Only an estimated $12.5 million.
posted by Mike Larson at
4:25 PM
1 Comments:
I have never heard of anything so contemptible in my life. The FDIC is going to bail out guys so rich they have more than $250,000 in a single bank account, and so careless they left it in that account in the current economic crises. AND they are going to do it with my money. Why should the US Taxpayer be on the hook to rescue these guys? How can the FDIC just decide, on its own hook to rescue these fat cats?
For that matter, how can the FDIC be so asleep at the switch that they are going to have to bail a bank out to the tune of MORE THAN A THIRD OF ITS TOTAL LOAN AMOUNT. The Haven Trust Bank only had $572 million dollars in loans and the FDIC is STILL going to have to bail them out to the tune of $200 million. The FDIC is the most incompetent organization I have ever heard of. Only no one could be that incompetent. The only way a situation could get that bad would be for the FDIC to willfully ignore it for as long as they could. Then they go in and arrange a sweetheart deal for the big depositors.
I wish some newspaper reporter would look into what kind of campaign contributions the owners of New Haven bank have been handing out. And to whom. This thing just stinks to high heaven of corruption and special deals for insiders.
By
Anonymous, at December 13, 2008 at 7:14 AM
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