Experience should teach us wisdom. Most of the difficulties our
Government now encounters and most of the dangers which impend over our
Union have sprung from an abandonment of the legitimate objects of
Government by our national legislation, and the adoption of such
principles as are embodied in this act. Many of our rich men have not been
content with equal protection and equal benefits, but have besought us to
make them richer by act of Congress. By attempting to gratify their
desires we have in the results of our legislation arrayed section against
section, interest against interest, and man against man, in a fearful
commotion which threatens to shake the foundations of our Union. It is
time to pause in our career to review our principles, and if possible
revive that devoted patriotism and spirit of compromise which
distinguished the sages of the Revolution and the fathers of our Union. If
we can not at once, in justice to interests vested under improvident
legislation, make our Government what it ought to be, we can at least take
a stand against all new grants of monopolies and exclusive privileges,
against any prostitution of our Government to the advancement of the few
at the expense of the many, and in favor of compromise and gradual reform
in our code of laws and system of political economy." Andrew Jackson
"Now listen, you rich people, weep and wail because of the misery that is coming upon you. 2 Your wealth has rotted, and moths have eaten your clothes. 3 Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days." - James 5:1-3

Sunday, February 7, 2010

2010 US bank failure tally now 16 as 1st American State Bank of Minnesota fails

http://money.cnn.com/2010/02/05/news/economy/bank_failures/

Julianne Pepitone
CNNMoney.com
Fri, 05 Feb 2010 19:11 EST

Regulators shuttered a Minnesota bank on Friday night, for the 16th failure of 2010. The bank, 1st American State Bank of Minnesota, in Hancock, was closed by the state's Department of Commerce. The department named the Federal Deposit Insurance Corp. the receiver.

Customers of the failed bank are protected, however. The FDIC covers accounts up to $250,000.

The FDIC entered into a purchase and assumption agreement, in which it transfers control of the failed bank to a healthy institution, with Community Development Bank, FSB. The 1st American's two branches will reopen Monday under their new ownership.

Community Development will assume 1st American's $18.2 million in assets and $16.3 in deposits. Community Development entered into a loss-share agreement with the FDIC on $11.7 million of 1st American's assets.

The 36 branches of Community Bank and Trust will reopen as branches of SCBT.

Friday's closure will cost the FDIC approximately $3.1 million.

Customers of 1st American can access their money over the weekend by writing checks or using ATMs or debit cards. Checks will continue to be processed, and borrowers should make mortgage and loan payments as usual.

The FDIC also said customers should continue to use their existing branch until they receive notice that the takeover has been completed.

A total of 140 banks failed in 2009, the highest since 1992, when 181 banks failed. But that count is far from 1989's record high of 534 closures which took place during the savings and loan crisis.

Last year's spike has raised concerns about the federal deposit insurance fund, which has slipped into the red for the first time since 1991. The fund was $8.2 billion in the hole as of the end of September. But that includes $21.7 billion the agency has earmarked for future bank failures.
Posted by at 3:12 AM

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)