On Friday another 6 banks were seized by the Federal Depository Insurance Corporation (FDIC). This brings the 2010 total to 15, following the 140 banks seized last year.
The largest bank seized Friday was Los Angeles-based First Regional Bank, with nearly $2.2 billion in assets and $1.9 billion in deposits. The expected loss to be incurred by the FDIC is $825 million.
The other banks seized included First National Bank of Georgia; Community Bank and Trust of Cornelia, Georgia; Florida Community Bank of Immokalee, Florida; Marshall Bank of Hallock, Minnesota; and American Marine Bank of Bainbridge Island, Washington.
In total, the combined assets of the six banks were $5.5 billion, while deposits totalled $4.9 billion.
The two Georgia banks bring that state's total to 27 since the beginning of 2008, placing it first among failed banks.
Each bank was taken over. First Citizens Bank & Trust of Raleigh, North Carolina, will assume the balance sheet of First Regional Bank; Community & Southern Bank, also based in Carrollton, Georgia, agreed to assume the deposits and assets of First National Bank of Georgia; SCBT, a national bank based in Orangeburg, South Carolina, will take-over the balance sheet of Community Bank and Trust; United Valley Bank, based in Cavalier, North Dakota, will absorb Marshall Bank; Miami-based Premier American Bank will assume the balance sheet of Florida Community Bank; and Columbia State Bank of Tacoma, Washington, will take American Marine Bank.
The banking crisis will continue to deteriorate, especially as the next dip of the depression takes hold. Marko's Take? It will take AT LEAST one and maybe more BIG Banks with it. Could you imagine the implication if, say, Bank of America or Citicorp failed?
In his State of the Union address, President Obama said he would initiate a $30 billion program to provide money to community banks at low rates, if they boost lending to small businesses.
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