Two More Banks Fail – 3 for Week – 36 This Year
The Federal Deposit Insurance Corp. seized two banks in Illinois Friday evening.
Thirty six FDIC insured banks have failed this year, five in Illinois.
The deposits of Citizens National Bank are due to be acquired by Morton Community Bank as part of a “loss share” agreement with the FDIC. Over the weekend depositors of Citizens National may access their funds through ATMs and check writing. The FDIC estimates the cost to their Deposit Insurance Fund at $106 million.
The FDIC has entered into a purchase agreement with Midland States Bank for the assets of Strategic Capital Bank. Strategic Capital’s only office will reopen on Tuesday, following the Memorial Day holiday, as a branch of Midland States. Strategic Capital’s customers will be able to write checks and access their funds via ATM over the weekend.
Strategic Capital’s failure is expected to cost the Deposit Insurance Fund some $173 million.
Seventy percent of FDIC insured banks which have failed since 2000 have failed during the current recession.
I think the far more interesting release tonight is their shift on bank fees. Looks like big banks (with more risk) will be paying a larger % of FDIC fees. But does that matter, really? When all their debt is guaranteed by us, and we shovel billions to them? I just did a post on it, sorry for the plug…
http://www.bearishnews.com/post/782