We’re just five (5) failures away from 100 failed banks in 2009. The Federal Deposit Insurance Corporation has now closed 95 banks so far this year.
Since September 4th, when the FDIC took over 5 banks, the number of banks failing has moderated. Over the last 3 weeks they have seized only 6 banks, the latest being Georgian Bank of Atlanta, the second largest bank based in Georgia’s biggest metropolitan area.
That now brings the total number of failed banks in the state of Georgia to 19 this year and 25 since August of 2008. Two weeks ago Illinois lost its 16th bank in ‘09 after only one failure in all of last year. The two states now account for over one third of all the 2009 bank foreclosures. By contrast California has 10 failed banks this year.
Georgian Bank had assets of $2 billion but lost $36.7 million in the second quarter. It was their 3rd consecutive quarterly loss. The closing of Georgian will cost the FDIC an estimated $892 million. That makes it the 6th most costly bank to the Federal Deposit Insurance Fund in 2009.
To date 39 banks have drained in excess of $100 million each from the fund with 12 of the 95 banks showing the cost unavailable. Bank United in Florida siphoned $4.9 billion and Guaranty in Austin cost the FDIC approximately $3 billion from the fund. Three (3) other banks required more than $1.3 billion each to complete the foreclosure.
Six (6) more banks have cost more than half a billion dollars. That’s billion with a B. And 28 more have required $100 million or more. How many more this year will require huge sums of money from the fund and at what point does the FDIC begin to rely on taxpayer money? Read the rest of this entry »