Two U.S. banks fail, first casualties in 2009

[UpInArms]

Source: Reuters

WASHINGTON (Reuters) - Bank regulators closed two small banks on Friday, the first U.S. banks to fail this year but the latest in an upsurge that began last year as the struggling economy and falling home prices took their toll on financial institutions.

The Federal Deposit Insurance Corp said National Bank of Commerce of Berkeley, Illinois and Bank of Clark County of Vancouver, Washington were closing with other banks taking over their insured deposits.

In 2008, 25 banks were seized by officials, up from just 3 in 2007.

National Bank had $430.9 million in assets and $402.1 million in deposits, with Republic Bank of Chicago assuming its insured deposits, the FDIC said. Republic Bank will also purchase $366.6 million in assets at a discount of $44.9 million, it added.

Umpqua Bank, a subsidiary of Umpqua Holdings Corp, agreed to assume insured deposits of the Bank of Clark County, which had $446.5 million in assets and $366.5 million in deposits, the FDIC said.

The FDIC insures up to $250,000 per account through 2009 and individual retirement accounts at insured banks.

But Bank of Clark County had about $39.3 million in uninsured deposits in 138 accounts that may exceed the insured limit, the FDIC said. It added that "is likely to change once the FDIC obtains additional information from these customers."

Read more: http://www.reuters.com/article/newsOne/idUSTRE50G0LJ20090117

[dysfunctional press]

1. nationalize the banking industry.

3.5% fixed-rate mortgages for EVERYONE.

[onehandle]

5. I agree 100%. Our money is created, distributed, and owned by the United States.

Their name is right on it.

Why not let them Be the Bank?!

[On the Road]

9. You Want to Create Another Housing Bubble

AND lend money to even more people who can't afford it? And let the taxpayers foot the bill?

[dysfunctional press]

10. by "everyone" i mean everyone who qualifies...

whether it be 15, 30, or 50 year mortgages- it should be the same low fixed rate for everyone(who qualifies).
i'd just like to see as many people be able to buy homes as possible, and get the glut of homes off the market.

[KansDem]

2. What about our $700 billion?

Bank regulators closed two small banks on Friday

Oh, I see...

[onehandle]

3. The first failures under Obama.

Oh, wait...

[lonestarnot]

7. Yeah oh wait....

:evilgrin:

[Baby Snooks]

4. Will Congress bail out those 138 depositors?

"But Bank of Clark County had about $39.3 million in uninsured deposits in 138 accounts that may exceed the insured limit, the FDIC said. It added that "is likely to change once the FDIC obtains additional information from these customers.""

Most likely they were commercial accounts. So some businesses will be out of business. Will Congress bail them out? Of course not. Congress is only bailing out the crooks. Not their victims.

[Selatius]

11. I bet you if these businesses had accounts totalling 39.3 billion, it'd be a different story.

In such a case, the businesses could afford to flood Capitol Hill with an army of lobbyists and money-laced promises of help the next time they are up for re-election on condition that they get a bail-out.

[BR_Parkway]

6. How does allowing another bank to buy $366 million in assets for

$44 million actually help anyone besides the bank doing the buying? Are we making up the difference? If so, I want the assets.

[Loge23]

8. Hope may arrive in 2011

We're still sinking...and the rate of the decline is increasing.
There will be shocking failures in the next three months across the country - banks, businesses, and of course, households.
This isn't crystal ball crap - it's reality.

We will re-define what a depression looks and feels like.

At best, recovery cannot be expected until 2011. 2010, in the most optimistic projection, will mark the end of the decline.

I want so much to not face this, but cockeyed optimism only works in the theatre.