Failed: Freedom Bank of Georgia, Commerce, GA
March 6, 2009
From FDIC Press Release:
Freedom Bank of Georgia, Commerce, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Northeast Georgia Bank, Lavonia, Georgia, to assume all of the deposits of Freedom Bank of Georgia.
The four offices of Freedom Bank of Georgia will reopen on Monday as branches of Northeast Georgia Bank. Depositors of Freedom Bank of Georgia will automatically become depositors of Northeast Georgia Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until Northeast Georgia Bank can fully integrate the deposit records of Freedom Bank of Georgia.
Over the weekend, depositors of Freedom Bank of Georgia can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of March 4, 2009, Freedom Bank of Georgia had total assets of approximately $173 million and total deposits of $161 million. In addition to assuming all of the deposits of the failed bank, Northeast Georgia Bank agreed to purchase approximately $167 million in assets at a discount of $13.65 million. The FDIC will retain the remaining assets for later disposition.
Security Savings Bank, of Henderson, Nevada closed.
February 28, 2009
From FDIC press release:
Security Savings Bank, Henderson, Nevada was closed today by the Nevada Financial Institutions Division, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
FDIC Problem Bank Watch List Grows
February 27, 2009
The FDIC “problem” bank watch list grew from 171 banks to 252 banks, according to the FDIC’s most recent quarterly report.
The FDIC, however, does not release the names of the banks on their list.
Source: FDIC Press Release
FDIC Bank Insurance Fund at 25 Year Low
February 27, 2009
The NY Times is reporting that the FDIC’s bank deposit insurance fund is at a 25 year low, with $19 billion, down from $52 billion at the end of 2007. The FDIC released their quarterly report which shows that banks lost $26.2 billion in the fourth quarter, the largest quarterly loss on record.
Source: NY Times
Nationalization Talk Heats Up
February 18, 2009
In today’s Wall Street Journal opinion page Matthew Richardson and Nouriel Roubini say that Treasury Secretary Tim Geithner’s bank rescue plan, dubbed “Bailout 2.0″ points to inevitable nationalization of the failing banks:
While it was not his intention, the reality is that Mr. Geithner is going to confirm the insolvency of the financial system. Once we face this truth, there really isn’t much left to do but nationalize.
The nationalization chorus has grown, the Financial Times reports, with Alan Greenspan now supporting bank nationalization as well:
”It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring,” he said. “I understand that once in a hundred years this is what you do.”
10th Bank Failure of 2009
February 13, 2009
From the FDIC Press Release:
Sherman County Bank, Loup City, Nebraska, was closed today by the Nebraska Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank, Wood River, Nebraska, to assume all of the deposits of Sherman County Bank.
3 Banks Fail Today – Is Yours On The List?
February 6, 2009
Three banks failed today and their aquired by the FDIC:
FirstBank Financial Services, McDonough, Georgia; FDIC press release: http://www.fdic.gov/news/news/press/2009/pr09017.html
Alliance Bank, Culver City, California; FDIC press release: http://www.fdic.gov/news/news/press/2009/pr09018.html
County Bank, Merced, California; FDIC press release: http://www.fdic.gov/news/news/press/2009/pr09019.html
National Bank of Commerce, Berkeley, IL Closed by FDIC
January 16, 2009
National Bank of Commerce, Berkeley, Illinois, was closed today by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Republic Bank of Chicago, Oak Brook, Illinois, to assume all of the deposits of National Bank of Commerce.
The two locations of National Bank of Commerce will reopen on Saturday as branches of Republic Bank of Chicago. Depositors of the failed bank will automatically become depositors of Republic Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until Republic Bank can fully integrate the deposit records of National Bank of Commerce.
Source: FDIC Press Release
Bank of Clark County, Vancouver, WA Closed by FDIC
January 16, 2009
Bank of Clark County, Vancouver, Washington, was closed today by the Washington Department of Financial Institutions, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Umpqua Bank, Roseburg, Oregon, to assume the insured deposits of the Bank of Clark County.
Bank of Clark County will reopen on Tuesday, due to the Martin Luther King, Jr. holiday, as branches of Umpqua Bank. Depositors of the failed bank will automatically become depositors of Umpqua Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage.
Source: FDIC Press Release
Citigroup to be nationalized?
January 15, 2009
Federal Deposit Insurance Corp. Chairman Sheila Bair stated that she would “be very surprised” if the government took control of any large U.S. banks, in response to a reporter’s question in the face of speculation that the federal government is on the brink of taking over Citigroup, Inc.
From Bloomberg