CHESSNOID

Another 4 more banks taken over by the FDIC, or as the government would spin it “these are signs of the economy recovering” (sarcastic).  My last update was back in YTD Bank Closures 108 as of 7.30.2010.  I will make a better effort to try to post these every Friday which is when the FDIC takes care of its business.  This Illinois bank was quite a large one at over $2 billion in assets.

Yesterday, there was a report that showed first time unemployment claims rose to 500,000.  The stock market tanked but really why is the market reacting in a surprised fashion.  The economy has not recovered and the companies showing increased profits on reduced revenues is simply cutting expense: labor.  Those two go hand in hand don’t they? The new formula for business success: increased profit= lower revenues minus labor costs.  Unfortunately, they will only be able to use this formula for a few quarters before they become bankrupt.

Calculated Risk:

From the FDIC: Urban Partnership Bank, Chicago, Illinois, Assumes All of the Deposits of ShoreBank, Chicago, Illinois

As of June 30, 2010, ShoreBank had approximately $2.16 billion in total assets and $1.54 billion in total deposits. … The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $367.7 million. … ShoreBank is the 114th FDIC-insured institution to fail in the nation this year, and the fifteenth in Illinois. The last FDIC-insured institution closed in the state was Palos Bank and Trust Company, Palos Heights, on August 13, 2010.

This was no surprise (in the works for some time and rumored this morning). That makes four today …

From the FDIC: CenterState Bank of Florida, National Association, Winter Haven, Florida, Acquires All the Deposits of Two Banks in Florida

As of June 30, 2010, Community National Bank At Bartow had total assets of $67.9 million and total deposits of $63.7 million; and Independent National Bank had total assets of $156.2 million and total deposits of $141.9 million. … The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) for Community National Bank At Bartow will be $10.3 million; and for Independent National Bank, $23.2 million. … These closings bring the total for the year to 112 banks in the nation, and the twenty-first and twenty-second in Florida.

From the FDIC: River Community Bank, National Association, Martinsville, Virginia, Assumes All of the Deposits of Imperial Savings and Loan Association, Martinsville, Virginia

As of June 30, 2010, Imperial Savings and Loan Association had approximately $9.4 million in total assets and $10.1 million in total deposits … The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.5 million. … Imperial Savings and Loan Association is the 113th FDIC-insured institution to fail in the nation this year, and the first in Virginia.