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Bernard L. Madoff

US Bank Failures

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SAN FRANCISCO (MarketWatch) -- A trio of bank failures in Puerto Rico and four more closures in Michigan, Washington and Missouri took a nearly $7.4 billion bite out of the federal deposit-insurance fund on Friday, while raising the number of U.S. bank failures this year to 64.

The Federal Deposit Insurance Corp. said Puerto Rico's Westernbank, Eurobank and R-G Premier Bank of Puerto Rico were all closed, with a combined $14.84 billion in deposits.

Their closure will cost the deposit-insurance fund roughly $5.28 billion, the regulator said.

The closure of Everett, Wash.-based Frontier Bank, which $3.13 billion in deposits, will cost the insurance fund $1.37 billion, the FDIC estimated.

According to a report in The Wall Street Journal, the FDIC hasn't grappled with such a significant problem in a single banking market since the savings and loan crisis of the 1990s.

Later in the day, the FDIC announced the closure of CF Bancorp. in Port Huron, Mich. The Michigan bank had $1.43 billion in deposits as of Dec. 31.

Two Missouri institutions, Creve Coeur-based Champion Bank and Butler-based BC National Banks, also were closed.

Champion Bank had $153.8 million in deposits as of Dec. 31, while BC National Banks had $54.9 million in deposits, according to the FDIC.

John Letzing is a MarketWatch reporter based in San Francisco.

http://www.marketwatch.com/story/puerto-rico-bank-failures-take-bite-out-of-fdic-2010-04-30

They are lucky that the US and global economy is in a boom boom recovery othrwise there'd be real trouble. :rolleyes:

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http://www.marketwat...fdic-2010-04-30

They are lucky that the US and global economy is in a boom boom recovery othrwise there'd be real trouble. :rolleyes:

the way they're going they're going to end up with only a few mega banks left.

i wonder what bank collapses do to local confidence. you never hear about it. if i had money in a bank that went tits up, even if it was bailed out and i got it back i think i'd be pretty nervous and keep a good percentage of my money in the first national mattress bank.

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the way they're going they're going to end up with only a few mega banks left.

As in Australia? The USA has a lot more choice when it comes to financial institutions than Australia. I admit most are mimicking each other but that is another story.

Edited by sydney3000

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As in Australia? The USA has a lot more choice when it comes to financial institutions than Australia. I admit most are mimicking each other but that is another story.

yes as in the US is heading down the Australia path. and yes i admit they've got a long way to go.

imo a lot of smaller banks is a better system than the oligopoly style of Australia's banking system.

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Another 4 to the list...

SAN FRANCISCO (MarketWatch) -- Four U.S. banks were closed by regulators Friday, bringing the number of bank failures in the year to date to 68. Bonifay, Fla.-based The Bank of Bonifay, Champlin, Minn.-based Access Bank, Mesa, Ariz.-based Towne Bank of Arizona and San Diego, Calif.-based 1st Pacific Bank were all closed, the Federal Deposit Insurance Corp. said. The four failures will cost the deposit-insurance fund $213.7 million, the FDIC said.

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