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 21, 2010

Four more US banks close, total hits 20 for 2010

http://www.reuters.com/article/idUSTRE61J0C520100220

Reuters
Fri, 19 Feb 2010 19:52 EST

Regulators seized four more U.S. banks on Friday, bringing the total for the year to 20.

The Federal Deposit Insurance Corp, in charge of safeguarding bank deposits and resolving failed banks, has predicted that 2010 will be peak year for failures resulting from the recent financial crisis.

It has warned that the banking industry's recovery will lag the overall economy as institutions continue to cope with deteriorating loans, many originated during the credit boom that ended when the housing bubble burst.

The FDIC said on Friday that regulators had closed four banks: the George Washington Savings Bank in Illinois, La Jolla Bank in California, La Coste National Bank in Texas and Marco Community Bank of Marco Island, Florida.

As of December 31, La Jolla Bank, FSB, which had 10 branches, had about $3.6 billion in assets and $2.8 billion in deposits. Its deposits are being assumed by OneWest Bank, FSB.

George Washington Savings Bank, which had four branches, had approximately $412.8 million in assets and $397.0 million in deposits. Its deposits will be assumed by FirstMerit Bank National Association in Ohio.

La Coste National Bank had approximately $53.9 million in assets and $49.3 million in deposits. Its single branch will reopen as part of Community National Bank in Texas.

Marco Community Bank had about $119.6 million in assets and $117.1 million in total deposits.

The FDIC's insurance fund balance is in the red, but the agency has said it has plenty of cash on hand to deal with failures and protect deposits. It also has the potential to tap its $500 billion line of credit with Treasury.

The agency is scheduled to give an update on its view of the banking industry when it holds a quarterly briefing on Tuesday.

It will reveal industry earnings for the fourth quarter of 2009, as well as provide an updated figure of the number of banks on its problem list.

As of the end of the third quarter, 552 banks were on the list. The FDIC has said the majority of banks on that list do not fail.

Last year, 140 banks failed, compared to 25 in 2008 and only three in 2007.
Posted by at 6:14 PM

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