Seven More Banks Fail

The financial crisis has claimed seven banks, bringing the total number of victims this year to 140. The FDIC took over seven of them: two large banks in California, and smaller ones in Alabama, Florida, Georgia, Michigan and Illinois. California is one of the states hardest hit by the collapse of the housing market, which has put pressure on mortgages written by banks in the community.

First Federal Bank of California, based in Santa Monica, had $ 6.1 billion in assets and $ 4.5 billion in deposits, and the Imperial Capital Bank in La Jolla had $ 4 billion in assets and $ 2.8 billion in deposits . So far this year, 17 banks in California have failed.

The failures of others were smaller. Rockbridge Atlanta Commercial Bank collapsed while holding $ 294 billion in assets and 291.7 million U.S. dollars in deposits, Citizens State Bank of New Baltimore, Michigan, was 168.6 million U.S. dollars in assets and 157.1 million dollars in deposits. New South Federal Savings Bank, Irondale, Ala., was a little larger, with $ 1.5 billion in assets and $ 1.2 billion in deposits and Peoples First Community Bank of Panama City, Florida, ( $ 1.8 billion in assets and $ 1.7 billion in deposits).

In Springfield, Ill., Bank Independent Bank, which served as a kind of bank wholesale customers to 450 banks in four states, closed. It had 585.5 million U.S. dollars in assets and 511.5 million U.S. dollars in deposits. OneWest Bank of Pasadena, Calif., is buying all their deposits and substantially all its assets. Independent 39 branches reopened on Saturday under the theme OneWest.

The only bank that the FDIC could not find a buyer Rockbridge, so that the FDIC will send checks to its account holders to cover insured deposits.

These bank failures subtract another 1.8 billion U.S. dollars of the insurance fund the FDIC:
First Federal Bank of California: 146.3 million U.S. dollars
Imperial Capital: 619.2 million U.S. dollars
Citizens State Bank: 76.6 million U.S. dollars
New South Federal Savings Bank: 212.3 million U.S. dollars
Peoples First Community Bank: 556.7 million U.S. dollars
Bank Independent Bank: 68.4 million U.S. dollars
Rockbridge Commercial Bank: 124.2 million U.S. dollars
Rockbridge had more than $ 2 million in time deposits, which exceeded $ 250,000 per account FDIC, which effectively account holders Rockbridge creditors. You can retrieve some of their money, but it could take months. Rockbridge was the twenty-fifth bank to go bankrupt in Georgia this year, giving it the dubious distinction of being the state with most bank failures in 2009.

The high number of bank failures pushed the insurance fund the FDIC in the red and has a $ 30 billion. The FDIC expects the cost of the crisis to its insurance fund to reach $ 100 billion over the next four years.

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