Almost forgot – it’s FDIC Friday!

I don’t know how I forgot about this – it’s a Friday tradition for the FDIC to take over failing banks.  That way it’s old news by Monday morning, and the stock market won’t tank.

Anyway, here are the latest bank shutdowns.  According to MarketWatch: Federal regulators closed three banks in a single day Friday, as the ongoing credit crisis showed no signs of abating.

Utah’s MagnetBank became the fourth bank failure of the year, and the Federal Deposit Insurance Corp. was forced to directly refund depositors after being unable to find another institution willing to take over its operations.

This is headline news.  I’ve been following this financial crisis for quite awhile, and I think this is the first time in a couple of years that the FDIC hasn’t been able to strike a deal with another bank to take over the operations of the failed bank.

Damn, I should’ve read the next paragraph before starting this post, as Marketwatch has a better memory than I do….  That marked the first time the FDIC has been unable to find an acquirer for a failed bank in nearly five years, according to FDIC spokesman David Barr. “This bank did not have an attractive franchise value, and not many retail deposits or core deposits,” Barr said. The FDIC had conducted an extensive marketing process for the bank’s assets, he said.

The FDIC later said it has also closed Maryland-based Suburban Federal Savings Bank, and Florida’s Ocala National Bank.

Add these to the list of failed banks.  That’s 6 already this year, and (according to MarketWatch) 31 since this mess started midway through 2007.

Let the good times roll.

gk

Share
%d bloggers like this: