4 More Banks Closed, estimated cost of $697m to the FDIC
Four more banks were closed last night by the FDIC, bringing the 2009 tally to 28 so far. Total estimated cost to the FDIC is $697 million.
- First Bank of Idaho, Ketchum ID: $191.2 million
- First Bank of Beverly Hills, Calbasas CA: $394 million
- Michigan Heritage Bank, Farmington Hills MI: $71.3 million
- Bank of North Georgia, Alpharetta GA: $41.9 million
Four banks were closed in the whole of 2007, so yesterday was a pretty bad day for the FDIC. Here are total annual closures since 2000:
- 2009, so far – 28
- 2008 – 26
- 2007 – 4
- 2004 – 4
- 2003 – 3
- 2002 – 11
- 2001 – 4
- 2000 – 2
I’m afraid we have a very nasty year ahead of us. Hopefully the FDIC will get some of the reform is badly needs. Responsible banks should not have to continue shouldering the load for bonus-happy, short-term profit-focused, dodgy loan-makers. A risk-adjusted fee system, in which banks making sketchy loans are forced to pay more insurance would be a start.
