CHESSNOID

Earlier I blogged that we were up to 14 bank closure for the year.  USA today cites one more bank than what I read earlier.  This is not a good start for the year and reflects the true strength of our banking system.  With all the taxpayer money that our government gave to the banks as bailouts, you have to wonder where all that money really went, right?  Did they go to pay salaries and bonuses?

USA Today:

WASHINGTON — Regulators shut down a big bank in California on Friday, along with two banks in Georgia and one each in Florida, Minnesota and Washington. That brought to 15 the number of bank failures so far in 2010 atop the 140 shuttered last year in the punishing economic climate.
The failure of Los Angeles-based First Regional Bank, with nearly $2.2 billion in assets and $1.9 billion in deposits, is expected to cost the federal deposit insurance fund $825.5 million.

The Federal Deposit Insurance Corp. took over the bank as well as the others: First National Bank of Georgia, based in Carrollton, Ga., with $832.6 million in assets and $757.9 million in deposits and Community Bank and Trust of Cornelia, Ga., with $1.2 billion in assets and $1.1 billion in deposits; Florida Community Bank of Immokalee, Fla., with $875.5 million in assets and $795.5 million in deposits; Marshall Bank of Hallock, Minn., with $59.9 million in assets and $54.7 million in deposits; and American Marine Bank of Bainbridge Island, Wash., with $373.2 million in assets and $308.5 million in deposits.

First Regional Bank’s collapse followed the shutdown of several large California banks in the last months of 2009. California was one of the states hardest hit by the real estate market meltdown, and many banks there have suffered under the weight of soured mortgage loans. Last year saw the failure of 17 banks in the state.

First-Citizens Bank & Trust Co., based in Raleigh, N.C., agreed to buy the deposits and $2.17 billion of the assets of First Regional Bank. The FDIC retained the remaining assets for later sale. In addition, the FDIC and First-Citizens agreed to share losses on $2 billion of the failed bank’s loans and other assets.

Community & Southern Bank, also based in Carrollton, Ga., agreed to assume the deposits and assets of First National Bank of Georgia.

SCBT, a national bank based in Orangeburg, S.C., is assuming the assets and deposits of Community Bank and Trust. United Valley Bank, based in Cavalier, N.D., is buying the assets and deposits of Marshall Bank.

Miami-based Premier American Bank., a new bank with a national charter set up last week, is buying the deposits and $499.1 million of the assets of Florida Community Bank. The FDIC will retain the remaining assets for later sale. In addition, the FDIC and Premier American Bank — owned by the investment firm Bond Street Holdings — agreed to share losses on $305.4 million of Florida Community Bank’s loans and other assets.

Columbia State Bank, based in Tacoma, Wash., is assuming the assets and deposits of American Marine Bank.