Four Banks Fail Across U.S. [FDIC Friday, 4/24/09]

wsj ^ | 4/24/2009

[lainie]

Failures in 2009 Already Outnumber 2008 Tally

WASHINGTON -- Four banks failed Friday in Georgia, Michigan, California and Idaho as the financial crisis continued its grip on small lenders across the country.

The Federal Deposit Insurance Corp. estimated the failures cost its deposit-insurance fund a combined $698.4 million. The fund is rapidly depleting and Congress is trying to pass legislation that would allow the FDIC to temporarily bolster it by borrowing up to $500 billion from the Treasury.

...

The 29 failures in 2009 are four more than the 25 that collapsed in all of 2008. Five banks have failed this year in Georgia and four in California.

The failures come the same day Federal Reserve officials met with executives from the country's 19 largest banks to discuss whether the firms had enough capital to withstand a worsening recession.

[lainie]

[lainie]

sigh.

[jveritas]

Of course the media is not talking about the destruction of our economy because they do not want to cause any hurt for the Socialist One. Even the fools at Wall Street seem not to care anymore about bad economic news. The markets aappear to be now totally detached from the economy.

[Roccus]

Just wait ‘til the new FDIC assessments go into effect. Then, even sound, well run banks that stayed clear of the sub-prime mess will be hurting.

[jiggyboy]

The fund is rapidly depleting and Congress is trying to pass legislation that would allow the FDIC to temporarily bolster it by borrowing up to $500 billion from the Treasury.

May I again point out that the "rapidly depleting" FDIC balance sheet is what has been designated, improbably, as the backstop for the "PPIC", which is nothing more than the latest version of the campaign to loot every institution in America.

[editor-surveyor]

We don’t need to subscribe to the WSJ to get the econ news; its free at moneyandmarkets.com

[editor-surveyor]

"

What you're seeing is the awareness on the part of most investors that Obama's spending, and buying of t-bills is going to cause hyper-inflation, and they are trying to stay in equities to ride it out. - It won't work, and all those that perceive the stock market to be safer than cash are going to loose it all for a second time in less than a year when the commercial real estate collapse comes into full effect.

[editor-surveyor]

"The markets appear to be now totally detached from the economy."

What you're seeing is the awareness on the part of most investors that Obama's spending, and buying of t-bills is going to cause hyper-inflation, and they are trying to stay in equities to ride it out. - It won't work, and all those that perceive the stock market to be safer than cash are going to loose it all for a second time in less than a year when the commercial real estate collapse comes into full effect.

[jveritas]

Yes, you are right.

[rabscuttle385]

The Money, Banking, and Financial Markets Ping List. "Money, not morality, is the principle commerce of civilized nations." —Thomas Jefferson FR Keywords: moneylist, bankinglist, financelist Please tag all relevant threads with the aforementioned keywords. This can be a very high-volume ping list at times. Ping list jointly pinged by rabscuttle385 and TigerLikesRooster. To join the ping list: FReepmail rabscuttle385 with the subject line add  moneylist. (Stop getting pings by sending the subject line drop moneylist.)

[sanchmo]

Yikes! A second FDIC Friday that costs the Deposit Insurance Fund over $600B?!?

As of December, the fund ratio was at 0.4, over 70% lower than the minimum requirement of (IIRC) 1.15. And it’s only at 0.4 because the ratio is calculated against $100k - not against the $250k of actually insured deposits. If you calculate the ratio based on the $250k limit and include the costly failures of 2009, it’s definitely at its lowest funding point ever.

[April Lexington]

Sounds like Georgia needs a new Banking Administrator. Way too many bank failures in Georgia.

[April Lexington]

The markets aappear to be now totally detached from the economy.

I've noticed this as well. The 20 somethings haven't a clue as to how to invest in this market. trillions more will be lost as they pretend to manage funds...

[Roccus]

Yikes! A second FDIC Friday that costs the Deposit Insurance Fund over $600B?!?

Actually, that was $698.4 Million.......but at this point, it really doesn't matter.(sigh)

[jiggyboy]

That would be 600 Million not Billion!

[April Lexington]

I agree. One has to remember that common stock is a derivative security. The value of the stock will depend on how well the underlying company can ride out the hyperinflation. Much better to hold tangible assets and metals and good wine and gold and cool old cars and beachfront property, etc...

[PAR35]

What you're seeing is the awareness on the part of most investors that Obama's spending, and buying of t-bills is going to cause hyper-inflation, and they are trying to stay in equities to ride it out. - It won't work,

You are probably right about it not working, but I can't come up with a better strategy at the moment.

[sanchmo]

oops, I should proofread more carefully before hitting post. DIF ratio is accurate though... and frightening.

[spokeshave]

"what you're seeing is the awareness on the part of most investors that Obama's spending, and buying of t-bills is going to cause hyper-inflation, and they are trying to stay in equities to ride it out. - It won't work, and all those that perceive the stock market to be safer than cash are going to loose it all for a second time in less than a year when the commercial real estate collapse comes into full effect"

So what do you suggest....thanks....my 401K is now 202k

[editor-surveyor]

Gold, or firearms are tops, and quality wine and liquor if you have the means to store it.