Regulators shut 5 banks as 2010 tally hits 78 (FL-CA-NV)

Reuters/YahooNews ^ | 5/28/10 | Christopher Doering

[Kartographer]

U.S. regulators seized five more troubled banks on Friday, including three banks owned by Bank of Florida Corp, bringing the tally of banks closed so far this year to 78.

The Federal Deposit Insurance Corp said Bank of Florida - Southeast; Bank of Florida - Southwest; and Bank of Florida - Tampa Bay had a combined $1.48 billion in assets and 13 branches between them.

EverBank of Jacksonville, Florida, has agreed to acquire the banking operations, including a combined $1.32 billion in deposits, the FDIC said.

In addition, regulators shut Las Vegas-based Sun West Bank. The bank had $360.7 million in assets and $353.9 million in deposits. All its deposits will be taken over by City National Bank of Los Angeles.

The FDIC also announced regulators closed Granite Community Bank of Granite Bay, California, which had $102.9 million in assets and $94.2 million in deposits. Tri Counties Bank of Chico, California, assumed all the deposits.

[Kartographer]

BUT...But...but the Unicorn Master promised....

[TwelveOfTwenty]

So we spent billions to save our banking system, borrowed from foreign countries that we have to repay, and our banking system is still collapsing.

[Kartographer]

“So we spent billions to save our banking system, borrowed from foreign countries that we have to repay, and our banking system is still collapsing.”

Yeah, who would have thunk......

[STONEWALLS]

...another quiet Friday-before-the-weekend closing...these things make me uneasy....the FDIC is going broke too.

[Starboard]

The FDIC expects bank failures to peak this year following the worst financial crisis since the 1930s. Closures in 2010 are anticipated to exceed the 140 institutions that were shut last year.

I'll finish the rest of the paragraph for Reuters since they neglected to put the 2010 closures into perspective: "With 78 closings to date, at this rate 187 banks may fail in 2010 representing a 33% increase over last year."

[TwelveOfTwenty]

"With 78 closings to date, at this rate 187 banks may fail in 2010 representing a better than expected 33% increase over last year."

There, fixed it so Reuters will report it.

[Jim W N]

Someone please explain the constitutional authority of “regulators.”

[SnuffaBolshevik]

[Starboard]

Good one!!! I realize too that the projection may also vary due due to “seasonal adjustments”. :)

[BenKenobi]

Urchins! Yay!

[cutty]

Problem bank list hits 775

[Kevmo]

There’s actually a way to make money from this. I suggested a contract at Intrade covering the number of bank failures and they posted the contract.

Anyone who is certain of their position, puts their money down and turns out to be right, will make money from this.

Number of US Bank Failures in 2010 (see contract rules)
Contract Bid Ask Last Vol Chge
US.BANKFAILURES.2010.>75
75 or more US banks to fail during 2010 M Trade 50.0 - - 0 0
US.BANKFAILURES.2010.>100
100 or more US banks to fail during 2010 M Trade 30.0 - - 0 0
US.BANKFAILURES.2010.>125
125 or more US banks to fail during 2010 M Trade - - - 0 0
US.BANKFAILURES.2010.>150
150 or more US banks to fail during 2010 M Trade 60.0 - - 0 0
US.BANKFAILURES.2010.>175
175 or more US banks to fail during 2010 M Trade 18.9 - - 0 0
US.BANKFAILURES.2010.>200
200 or more US banks to fail during 2010 M Trade 12.0 - - 0 0
US.BANKFAILURES.2010.>225
225 or more US banks to fail during 2010 M Trade - - - 0 0
US.BANKFAILURES.2010.>250
250 or more US banks to fail during 2010 M Trade 7.0 - - 0 0