U.S. regulators close banks in Nevada, Illinois

[Pale Blue Dot]

Source: Reuters

WASHINGTON, Feb 27 (Reuters) - U.S. regulators closed Security Savings Bank in Henderson, Nevada, and Heritage Community Bank in Glenwood, Illinois, the Federal Deposit Insurance Corporation said on Friday.

Heritage, which had four offices, had total assets of $232.9 million and total deposits of $218.6 million as of Dec. 5, 2008. It will be acquired by MB Financial Bank.

Security Savings Bank, which had two offices, had total assets of approximately $238.3 million and total deposits of $175.2 million as of Dec. 31, 2008. It will be taken over by the Bank of Nevada.

In 2008, 25 U.S. banks were seized by officials, up from only 3 in 2007.

Read more: http://www.reuters.com/article/governmentFilingsNews/idUSWEN534320090228

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I believe that this makes 16 failures already in 2009.

[Doctor Cynic]

1. It's Groundhog Day...uh...FDIC Friday!

[Old Michigander]

4. Tier 1 Capital Leverage Ratios

The Nevada bank had a ratio of 1.9% and the Illinois bank was at 2.0. As I recall, you have to be at or above 6.0% to be considered well-capitalized. When this whole thing is over, we will have a lot fewer banks. Canada gets by with only about 5 banks. I don't see why we need so many.

[Doctor Cynic]

5. It's not entirely true that Canada has five banks.

There are six "major" banks, though there are dozens of local banks, Credit Unions, and so forth. Still a lot less banks proportionally.

A good thing about a Canadian-like system is stability and regulation. The bad thing is that Canada is an oligopoly, meaning that all the banks treat their customers like shit with so many penalties and charges.

You get some, you lose some.

[SoCalNative]

2. Yes 16 failures so far in 2009

only 9 short of the total failures (25) in all of 2008.

http://www.fdic.gov/bank/individual/failed/banklist.html

[UpInArms]

3. I almost forgot that it was yet another bank-failure-Friday!

2 more down - 250 to go