9 more U.S. banks fail

[thewiseguy]

Source: MarketWatch

SAN FRANCISCO (MarketWatch) -- Nine more U.S. banks, all owned by the same Illinois holding company, were closed Friday by regulators, and the Federal Deposit Insurance Corp. said U.S. Bank of Minneapolis would assume their deposits.

The closings brought the 2009 total to 115 in 2009 -- the first year since 1992 that more than 100 banks have gone under.

The banks as of Sept. 30 had combined assets of $19.4 billion and deposits of $15.4 billion, the FDIC said.

The deposit insurance fund will take an estimated $2.5 billion hit, the FDIC said.

Read more: http://www.marketwatch.com/story/9-more-us-banks-fail-2...

---

Links of banks failed today:

Bank USA, Phoenix; California National Bank, Los Angeles; San Diego National Bank, San Diego; Pacific National Bank, San Francisco; Park National Bank, Chicago; Community Bank of Lemont, Lemont, Ill.; North Houston Bank, Houston; Madisonville State Bank, Madisonville, Texas; and Citizens National Bank, Teague, Texas.

[harvey007]

1. Makes me wonder how safe the big banks are

Could this happen to Chase and Wells Fargo as well?

[FarCenter]

8. No, Chase and Wells Fargo are too big to fail

The FDIC doesn't remotely have enough money in their insurance pool to close Chase or Wells Fargo.

Note also that the FDIC always works with a larger bank, in this case US Bank, to take over the smaller failing institution.

Who would take over Chase or Wells Fargo?

[xchrom]

2. wow. -- 9 -- that's a pretty big number. nt

[thewiseguy]

3. and the numbers were not released until an hour ago

Whats worse is that FDIC's funds took a 2.5 billion dollars hit in just one week.

[xchrom]

6. yikes!. nt

[murphyj87]

4. US banks fail among other things

Not only is the Canadian unemployment rate for September 8.4% and the US unemployment rate for September 9.8%. but 115 US banks have failed and NO Canadian banks have failed. Small business is thriving in Canada because health care costs are much less, since 100% of Canadians are covered by a government funded single payer health care system. Canadian companies only have to provide insurance for dental care, vision care, and prescription drugs. American companies are saddled with the overpriced US insurance-run health care system, which costs almost twice per capita to cover 64% of Americans as the Canadian system pays per capita to cover ALL Canadians. There is a definite connection between unemployment, business costs, and the excessive health costs in the US insurance-run system.

[YvonneCa]

9. Welcome to DU...

...

[eridani]

10. Bingo. And welcome.

And call your congresscritters to get them to support the Weiner amendment.

[SpiralHawk]

14. Thank you, Murph

A little common sense would make a big difference down here in the Great Dim South.

[UpInArms]

5. related: Feds to seize LA bank in 4th biggest failure: report

http://www.reuters.com/article/businessNews/idUSTRE59U0...

LOS ANGELES (Reuters) - Regulators are expected to seize Los Angeles-based California National Bank on Friday in what would be the fourth-largest U.S. bank failure this year, the Los Angeles Times reported, citing unnamed sources.

The Wall Street Journal reported this month that Minneapolis-based U.S. Bancorp was eyeing an acquisition of Cal National's parent, FBOP Corp: a private group with more than $18 billion in assets that owns eight banks in Texas, Illinois, Arizona and California.

The Federal Deposit Insurance Corp, which oversees U.S. banks and safeguards deposits, and U.S. Bancorp officials could not be reached for comment.

U.S. Bancorp is expected to take over Cal National with no losses to depositors, and its branches should re-open as normal Saturday or Monday rebranded U.S. Bank, the newspaper cited people familiar with the matter as saying.

U.S. Bancorp, which has been buying up distressed assets this year, is conducting due diligence now on FBOP and its other banks, the Journal has reported.

A bank official who answered the main number at Cal National's headquarters said they could not talk at the time.

Bank failures in 2009 are at their highest level since 1992, with over 100 banks collapsing. The largest institution to fail in the current financial crisis is Washington Mutual, which boasted assets of $307 billion when it was shuttered in September 2008.

...more...

[xchrom]

7. ...

[Better Today]

11. Realted LBN: USBANCORP gets $18Bil of seized assets

...making another bank to big to fail


http://www.reuters.com/article/newsOne/idUSTRE59U054200...

[Dover]

13. It's called consolidation, but you won't hear that term used.

However, many World Bank and IMF white papers have been written which outline a plan to consolidate banks, thus creating more 'efficiency'. So how does such a plan get implemented? We're looking at it. Many of the medium-sized banking institutions in particular that compete more directly with the larger banks are on the chopping block, to be absorbed by larger banks or closed altogether.

Alternatively, there are opposing white papers which call this scheme into question due to the risk
of having fewer and larger banks fail and taking down whole economies with them.

[Alcibiades]

12. Is the FDIC bankrupt?

Don't worry, they have a half-trillion dollar credit line. Nothing to see here!