Bank Closures

Well, I checked yesterday with the FDIC to see if any bank closures had occured Friday. None were reported when I checked, which was about mid-afternoon. I re-checked today and low and behold 4 more closures are reported. Two in Georgia, 1 in Florida and 1 in Arizona. This raises the total clousres to 41 this year.

These are from the FDIC website:

1. McIntosh Commercial Bank, Carrollton, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CharterBank, West Point, Georgia, to assume all of the deposits of McIntosh Commercial Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $123.3 million.

2. Key West Bank, Key West, Florida, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Centennial Bank, Conway, Arkansas, to assume all of the deposits of Key West Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $23.1 million.

3. Unity National Bank, Cartersville, Georgia, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks, Little Rock, Arkansas, to assume all of the deposits of Unity National Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $67.2 million.

4. Desert Hills Bank, Phoenix, Arizona, was closed today by the Arizona Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with New York Community Bank, Westbury, New York, to assume all of the deposits of Desert Hills Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $106.7 million.

The total cost to the DIF for these four bank closures this week is : $320.3 million

I went back and looked at all the press releases for all bank closures for 2010 and tallied up the DIF costs and found it totaled...$6.510 billion.

I will try and keep a running total each week of the costs to the DIF.