Bank Failure Friday

[joe_momma]

Salutations!

Another Friday means another round of BFF - the weekly contest to see how many banks the FDIC declares insolvent (with more than 400 insolvent and 2,700 that are "over extended") there may be a fine line between doing their job and maintaining a facade that things are not completely out of control.

The past few weeks have seen a substantial output - 7, 7, and 9 banks closed in the previous three weeks (counting Puerto Rico ).

How will the FDIC do this week?

As a bonus tiebreaker - choose one state (or district/protectorate/commonwealth) which will receive the care and ministrations of the benevolent bureaucracy.


One can follow along at
http://www.fdic.gov/bank/individual/failed/banklist.html

I'll go with 8 banks and Californistan for the "ruprick" -

Good luck all!


Traveler's note - Still in Asia - The past few days have been amusing. The dollar went up 1% against the Baht in less than an hour and my European colleagues all have an expression that suggests they've been eating too much cheese.

[MNeagle]

4-6 with Michigan.

[EE_]

Can we get the number of branches that go down with the banks?

[Ares]

7-8 and Illinois for the win

[FreeEnergy]

missing one position - sell gold and silver, buy goldman sachs

[Ash_Williams]

I went with 9+ this week, but then I'm an optimist.

[DMac]

Going 1-3 this week. I think we had our "whoopsie!" fat fingered moment yesterday.


Powerball - NJ

[1970 Silver Art]

The FDIC goons must be very exhausted after closing so many banks in the last 3 Fridays. I think that the FDIC goons are going to take a break this Friday. With that said, I am calling for a "Terrible Two" for today. I think that there will be only 2 bank failures today. Georgia is going to be the "powerball" state.

[gunny highway]

i'm going to stick with consistency and predict 8 failures today.

[optionT]

Im going with 43 and my Ruprick is Illinois. :-*

[k-os]

I am going for a "whoopsie" this week. I think it's going to be bad.

[StackerKen]

I'm guessing it will be an average Friday with 4 to 6 banks failing

[Apparition]

4-6 is my guess.

[Gaillo]

I'm thinking in light of yesterday's stock market fiasco, they'll go light on the banks today in an attempt to not shake confidence further... LOTS of sheep left to be sheared!

[Spectrism]

I say 8.

They are getting the hang of this... soon they will be able to handle 20.

[General of Darkness]

I say 8.

They are getting the hang of this... soon they will be able to handle 20.


That's my guess, 2 already in the bag.

[MNeagle]

Regulators close banks in Florida, Minnesota

CHARLOTTE, N.C. (AP) -- Regulators on Friday shut down banks in Florida and Minnesota, bringing the number of U.S. bank failures this year to 66.

The Federal Deposit Insurance Corp. took over The Bank of Bonifay, based in Bonifay, Fla., which had $242.9 million in assets and $230.2 million in deposits as of March 31.

The FDIC also seized Access Bank, in Champlin, Minn., with $32 million in assets and $32 million in deposits at the end of March.

First Federal Bank of Florida in Lake City, Fla. agreed to acquire Bonifay's deposits and about $78.1 million of its assets. The FDIC will keep the remainder for eventual sale.

PrinsBank of Prinsburg, Minn. will assume Access' deposits and assets.

The failure of The Bank of Bonifay is expected to cost the deposit insurance fund $78.7 million; that of Access Bank, $5.5 million.

With the 66 so far this year, the pace of bank closures this year is double that of 2009. By May 1 last year, U.S. regulators had shut down 32 banks.

There were 140 bank failures in the U.S. last year, the highest annual tally since 1992, at the height of the savings and loan crisis. They cost the insurance fund more than $30 billion. Twenty-five banks failed in 2008 and only three succumbed in 2007.

The number of bank failures likely will peak this year and will be slightly higher than in 2009, FDIC Chairman Sheila Bair said recently.

As losses have mounted on loans made for commercial property and development, the growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, hitting a $20.9 billion deficit as of Dec. 31.

The number of banks on the FDIC's confidential "problem" list jumped to 702 in the fourth quarter from 552 three months earlier, even as the industry squeezed out a small profit. Still, nearly one in every three banks reported a net loss for the latest quarter.

The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years.

The agency mandated last year that banks prepay about $45 billion in premiums, for 2010 through 2012, to replenish the insurance fund.

Depositors' money -- insured up to $250,000 per account -- is not at risk, with the FDIC backed by the government. Apart from the fund, the FDIC has about $66 billion in cash and securities available in reserve to cover losses at failed banks.

http://finance.yahoo.com/news/Regulators-close-banks-in-apf-2475780035.html?x=0

[platinumdude]

Here is a credit union that closed up this past Saturday. (Not that it affects the prediction count)

St. Paul's Croatian Federal Credit Union. Eastlake, Ohio 05/01/2010

[SeekYeFirst]

1-3 with Oregon. I think they won't want to rock the boat much today.

[Quantum]

Four Babylon Banks are done for so far today.

[MNeagle]

FDIC shuts banks in Fla., Minn., Ariz., Calif.

http://finance.yahoo.com/news/FDIC-shuts-banks-in-Fla-Minn-apf-2475780035.html?x=0

[1970 Silver Art]

WOW!!!!! No Georgia banks..........yet.

[joe_momma]

Looks like it is four banks today -
1st Pacific Bank of California San Diego CA
Towne Bank of Arizona Mesa AZ
Access Bank Champlin MN
The Bank of Bonifay Bonifay FL


Well done and Kudos to all - see you next week!

[Hugginator]

Thanks Joe, always enjoyed this thread