Banks in Calif., Ill., Fla., Texas are shut down (putting US bank failures at 20 for year)

Yahoo Finance (AP) ^ | February 19, 2010 | Marcy Gordon

[Cheap_Hessian]

WASHINGTON (AP) -- Regulators shut four banks from California to Florida on Friday, boosting to 20 the number of U.S. bank failures this year following the 140 closures last year in the worst financial climate in decades.

The Federal Deposit Insurance Corp. took over La Jolla Bank, FSB, in La Jolla, Calif. The bank had 10 branches and about $3.6 billion in assets and $2.8 billion in deposits.

Also seized was George Washington Savings Bank in Orland Park, Ill. It had four branches and about $412.8 million in assets and $397 million in deposits.

The FDIC said OneWest Bank in Pasadena, Calif., agreed to assume all deposits and essentially all assets of La Jolla Bank. The takeover is expected to cost the deposit insurance fund an estimated $882.3 million.

The FDIC and OneWest will share losses on about $3.3 billion of the failed bank's loans and other assets.

Meanwhile, FirstMerit Bank, National Association of Akron, Ohio, agreed to take over deposits at George Washington Savings Bank. FirstMerit is also taking over essentially all the assets. For George Washington, the FDIC predicts the takeover will cost the insurance fund $141.4 million.

[rovenstinez]

I thought things were ‘too big’ too fail. They needed Obama Care for the banks!

[chuck_the_tv_out]

and once again the banking business is centrally consolidated, just like 1929.

[bgill]

But, but the economy is improving!!!

[EGPWS]

We need a tax increase and more government spending to go along with it and then this string of misfortune for the banks will finally end.

Soon it won't be Bush's fault any more.

[FromLori]

ping

Not my post but check out this video by Elizabeth Warren in relation to the banks and collapse of cre

http://www.youtube.com/watch?v=VBbsx56cVrI&feature=player_embedded

[jennyjenny]

OneWest Bank, eh? Isn’t that Soros?

[La Enchiladita]

OneWest is in actuality George Soros, and they are taking over all the failed banks.......no dots to connect here......

[rabscuttle385]

*Ping!*

[webschooner]

Is a “Savings Bank” the same as a Savings and Loan, or not?

On another thread, some are saying that Credit Unions are a safer place for $ than banks. What is the difference between a Savings Bank and a Credit Union, anyone know?

[pointsal]

Ever see the video about OneWest and Indymac?

Search for ThinkBigWorkSmall.com

[perchprism]

Thanks for ping.

[jennyjenny]

Sure did.

[April Lexington]

drip... drip... drip... It may not be pretty but its exactly what the banking industry needs to cull the herd. These banks rolled the dice but came up short. They need to go away. As long as the process is orderly, we are relatively safe. Scary part... the FDIC is getting close to tapping its $500 billion line of credit. Watch for the ultimate collapse of the American dollar as the borrowing binge continues. Stay debt free and liquid...

[MediaMole]

Right now, the FDIC is paying the banks that take over the failed operations. A friend of mine works in upper management for a bank that has taken over a failed bank. They got a big chunk of cash to take the sting out of dealing with the bad loans.

In many cases, it’s poor management that did in these banks. Lots of nepotism and overpaid executives that failed to exercise any real oversight.

The real test will come when the FDIC is unable to find “buyers” for some banks and has to really liquidate. People will be locked out of their money for some time instead of having the bank closed for a weekend and reopening on Monday with a new name.