Finance Geek

Bank Failure Thurdsay Extravaganza

crazynutjob:

The FDIC took advantage of the long weekend. Seven banks were added to the FDIC Failed Bank List:

1. Founders Bank, Worth, IL — Total deposits of $848.9 million and an estimated hit to the FDIC fund of $188.5 million.

2. Millennium State Bank of Texas, Dallas, TX — Total deposits of $115 million and an estimated hit to the FDIC fund of $47 million.

3. The First National Bank of Danville, Danville, IL — Total deposits of $147 million and an estimated hit to the FDIC fund of $24 million.

4. The Elizabeth State Bank, Elizabeth, IL — Total deposits of $50.4 million and an estimated hit to the FDIC fund of $11.2 million.

5. Rock River Bank, Oregon, IL — Total deposits of $75.8 million and an estimated hit to the FDIC fund of $27.6 million.

6. The First State Bank of Winchester, Winchester, IL — Total deposits of $34 million and an estimated hit to the FDIC fund of $6 million.

7. John Warner Bank, Clinton, IL — Total deposits of $64 million and an estimated hit to the FDIC fund of $10 million.

From the press releases:

The six failed Illinois banks are all controlled by one family and followed a similar business model that created concentrated exposure in each institution. The failure of these banks resulted primarily from losses related to the banks’ investment in collateralized debt obligations and other loan losses.

That explains quite a bit. Illinois just hit 12 closures for the year. Congratulations, Illinois. Also, it looks like the FDIC did a reasonable job this time around.

There is a chance of more closures today, but I’m heading out for the evening. Happy Thursday.

The FDIC might just be the most efficient part of the Federal government. I get surprised every time I have to say that thought out loud.