Posted on 09/11/2009 11:02:38 PM PDT by Kartographer
The U.S. added two more banks to its growing list of bank failures Friday, bringing the tally for the year to 91.
Regulators shut down Chicago-based Corus Bank (CORS: 0.26, -0.0702, -21.26%) – the second largest bank to fail this year – and turned most of its assets over to MB Financial (MBFI: 17.03, 0.52, 3.15%).
The bank, which did much of its business in commercial real-estate loans, had $7 billion in assets and $7 billion in deposits as of June 30, according to a statement issued by the FDIC. The cost to the FDIC’s Deposit Insurance Fund is estimated to be $1.7 billion.
Regulators also closed Woodbury, Minn.-based Brickwell Community Bank on Friday. CorTrust Bank of Mitchell, S.D. will assume virtually all of its assets.
Brickwell Community Bank had $72 million in assets and about $63 million in deposits as of July 24. The cost to the FDIC’s Deposit Insurance Fund is estimated to be $22 million.
(Excerpt) Read more at foxbusiness.com ...
Bank failures are heralding hyperinflation. In order to prevent people from paying back “defaulted” loans at valueless dollar, the banks close shop altogether to avoid staggering losses.
Who are looking at high unemployment and the grand combo of hyperinflation and bank failures, a sort of currency depression mixed in with government lead inflation.
Meanwhile inside selling and crazy floatations on Wall Street means the Dow is artificialy leverage by dumb investors who do not know that you never buy floats, never act charitable toward suc brokerage schemes and never buy when insider selling and buy backs stand at zero (but sell/float away is going on).
And by the way, the Feds floating away their own worthless bonds has companies compete/imitate on that cash “trust” availability through their own floats. It’s not going to last.
I think we are on the verge of a precipice, whether we look at it or not, altitude/abyss fright/hynosis or not. Liberals have been given big rosy glasses that makes them look beyond the cliff in a wrong impression of closeness of it. They cannot jump this next one.
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