In Florida, the Federal Deposit Insurance Corporation took over Riverside National Bank, First Federal Bank of North Florida and AmericanFirst Bank. TD Bank Financial Group a division of Canadian company TD Bank (TD) took the deposits and nearly all the assets of each. Riverside National had $3.4 billion in assets, with First Federal at $393.3 million and AmericanFirst at $90.5 million.
Eight more banks failed last week,bringing the 2010 total to 50. Three of the failures were in Florida, and two were in California. Massachusetts, Michigan and Washington had one bank failure each.
For Lakeside Community Bank, in Sterling, Michigan, the FDIC couldn't find a buyer, so it will take over the direct deposit operation for federal payments (e.g., Social Security and VA benefits). Lakeside had assets of $53 million.
A bank can go bankrupt if its assets are less than its liabilities. This is not a problem for most of its customers since banks are FDIC insured, which means that the federal government insures bank deposits (up to $100,000). However, some people get confused about the difference between banks and other institutions that seem like banks, but are not. For example, you may have a money market account or brokerage account and it seems like a bank. But, look carefully at your statement and you should see the disclaimer "Not FDIC insured" somewhere on it.
A bank can go bankrupt just like any other institution or company can. Banks are typically less likely to go bankrupt than other risky industry company's though.
Yes, just like the Savings and Loans that went bankrupt in the early 80s. Charles Keating was buying influence in Washington which resulted in the Keating Five Scandal. It involved Democrats Dennis DeConcini, Alan Cranston, Don Riegle, and John Glenn plus Republican in name only John McCain. John Glenn and John McCain were exonerated, but the other three Democrats lost their jobs in the Senate.
Neil Bush, son of George HW Bush was a Director of Silverado S&L. Neil received a loan from Silverado, but was never found to have committed any crime.
So this turned out to be an exclusive Democrat scandal.
RECOVERY WATCH: Tracking the economy; see VIDEO
Last year, 140 banks failed in the U.S. That was the highest annual number since 1992 during the peak of the savings and loan crisis. The failures last year cost the FDIC's insurance fund more than $30 billion. Twenty-five banks failed in 2008 and three in 2007.
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