[Gerben]

Only 1 this week

Horizon Bank, Bellingham, Washington, was closed today by the Washington State Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Washington Federal Savings and Loan Association, Seattle, Washington, to assume all of the deposits of Horizon Bank.

The 18 branches of Horizon Bank will reopen during their normal business hours beginning tomorrow as branches of Washington Federal Savings and Loan Association.
...

As of September 30, 2009, Horizon Bank had approximately $1.3 billion in total assets and $1.1 billion in total deposits. Washington Federal Savings and Loan Association did not pay the FDIC a premium to assume all the deposits the Horizon Bank. In addition to assuming all of the deposits of the failed bank, Washington Federal Savings and Loan Association agreed to purchase essentially all of the assets of the failed bank.

The FDIC and Washington Federal Savings and Loan Association entered into a loss-share transaction on approximately $1.0 billion of Horizon Bank's assets.
...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $539.1 million.

[eXpat]

I´m opening a new thread here to track the bank closures in 2010, so we can keep track of this year.
Thanks Gerben for pointing it up that it was 1 this week
- Horizon Bank in Bellingham, WA
http://www.fdic.gov/bank/individual/failed/banklist.html

I wonder if the mods could lock the old thread, so as not to be confused with this one? Thanks.

[kmann]

Cost to DIF this week: estimated at 539 million.
It might also be useful to keep a running total of costs to the Deposit Insurance Fund.

[timmac]

Looks like Georgia has the most banks shut down than California takes 2nd place, must be pretty bad there in Georgia.

For such a small state why so many banks closed down, thought for sure Cali would have had 1st place..

[Tyler_JC]

What's worse, shutting down one bank with fifty branches or fifty banks with one branch?

How big are the banks being shut down?

The number of banks alone does not tell us much.

[kmann]

That's why I suggested keeping track of costs to the DIF. It's included in each bank closure press release, and is probably the best way to "keep score".

[eXpat]

Two banks this Friday.
-St. Stephen State Bank St. Stephen MN
-Town Community Bank & Trust Antioch IL
http://www.fdic.gov/bank/individual/failed/banklist.html
Regarding the amount that the FDIC has to cover, today is just peanuts

Customers of both banks are protected, however. The Federal Deposit Insurance Corporation, which has insured bank deposits since the Great Depression, currently covers accounts up to $250,000.

First American Bank in Elk Grove Village, Ill., will assume the failed bank's $67.4 million in deposits and will purchase the Town Community Bank and Trust's $67.6 million of $69.6 million in assets. The bank entered into a share-loss agreement with the FDIC on $56.2 million of the failed bank's assets. The FDIC said it will retain the remaining assets for later disposition.

The single branch of Town Community Bank and Trust will reopen as a branch of First American Bank.

First State Bank of St. Joseph in St. Joseph, Minn., will assume all of the St. Stephen State Bank's $23.4 million in deposits and "essentially all" of the failed bank's $24.7 million in assets. First State Bank of St. Joseph entered into a share-loss agreement with the FDIC on $20.4 million of the St. Stephen State Bank's assets.

The two branches of St. Stephen State Bank will reopen as branches of First State Bank of St. Joseph.

Friday's closures will cost the FDIC approximately $25 million.

http://money.cnn.com/2010/01/15/news/economy/bank_failure/

[eXpat]

One more for yesterday!
- Barnes Banking Company Kaysville
so 3 this week.

[kmann]

Barnes Banking Co. in Utah was significant. It's cost to the Deposit Insurance Fund will be about $270 million, bringing this week to about $300 milliion and year to date to approximatly $840 million.

[the48thronin]

Not to worry they are just 1s and 0s these days not real dollars!

[kmann]

Columbia River Bank, The Dalles, OR
Evergreen Bank, Seattle, WA
Charter Bank, Santa Fe, NM
Bank of Leeton, Leeton, MO
Premier American Bank, Miami, FL

Five banks this week at a cost to the DIF of $536 million, ytd about $1.38 billion.

[kmann]

Busy day for the FDIC:
American Marine Bank, Bainbridge Island, WA
First Regional Bank, Los Angeles, CA
Community Bank & Trust, Cornelia, GA
Marshall Bank, Hallock, MN
Florida Community Bank, Immokalee, FL
First National Bank of Georgia, Carrollton, GA

Today's hit is in the neighborhood of $1.8 billion, year to date $3.2 billion. One month gone in 2010 and the cost to the deposit insurance fund is going at a rate of about $40 billion annually. Not good, but certainly not catastrophic either.

[janeword]

Six this week. That's a total of 15 tisonth alone.

[JJ]

Not to worry they are just 1s and 0s these days not real dollars!

its the new "cashless" recovery....

[mcgowanjm]

Not to worry they are just 1s and 0s these days not real dollars!

its the new "cashless" recovery....

I understand what you're saying but they ARE real dollars.

They have to be until the US isolates itself. Then we can have
'play money', Zimbabwe Style.

What is coming, I think, is a nominal short term interest rate that is moderately negative - an official Fed rate rather than a market rate as at present (as the Fed follows the market). This means people will be paying to own t-bills, but this will still be one of the best options available for short term capital preservation. The capital will be far less likely to be lost there than in a bank, and the return OF capital is the important thing. Despite a negative nominal rate, the real rate (the nominal rate minus negative inflation) will still be high as deleveraging continues and accelerates.

It won't be as high as it would have been at a nominal rate of zero, but there would still be a real return on top of greater capital security than most other options.

That will increase the likelihood of cash withdrawals leading to bank runs.

[sjn]

I understand what you're saying but they ARE real dollars. They have to be until the US isolates itself. Then we can have 'play money', Zimbabwe Style.

What is coming, I think, is a nominal short term interest rate that is moderately negative --snip--
It won't be as high as it would have been at a nominal rate of zero, but there would still be a real return on top of greater capital security than most other options.

That will increase the likelihood of cash withdrawals leading to bank runs.

You can fully understand the desire of the USGOV/FED wanting to tax the economic output of the rest of the world by charging them for the privilege of holding US "assets", but to say it's insane to think it will fly really isn't strong enough. Where I disagree with the TAE writers is I think this will further undermine international confidence in the US$, even while domestically there is a run to cash, the net result will lead to that US financial isolation you mentioned above.

[mcgowanjm]

You can fully understand the desire of the USGOV/FED wanting to tax the economic output of the rest of the world by charging them for the privilege of holding US "assets", but to say it's insane to think it will fly really isn't strong enough. Where I disagree with the TAE writers is I think this will further undermine international confidence in the US$, even while domestically there is a run to cash, the net result will lead to that US financial isolation you mentioned above.

Yes, but in the 'crash' the world will flee to the 'safety'
of the $. Which, btw, will 'allow' for the rest of the world
to keep flooding the US with manufactured abroad goods.

Which will then 'force' the US into further actions. Thus
unlike the previous 100 years, the US becomes the one
that is reacting to world events.

We move from the Visible of Newtonian electromechanics
to the Invisible of Quantum Physics.

Ex: Congress and POTUS are working together:

January 30, 2010

In a surprisingly swift move on Thursday night that could have wide-ranging implications, the U.S. Senate passed a bill containing broad unilateral sanctions to punish foreign companies that export gasoline to Iran or help expand its domestic refinery capabilities.

Clinton said from now on, China will be under “a lot of pressure” to accompany the US campaign.

"As we move away from the engagement track, which has not produced the result that some had hoped for, and move forward on the pressure and sanctions track, China will be under a lot of pressure to recognize the destabilizing impact that a nuclear-armed Iran would have in the Persian Gulf, from which they receive a significant percentage of their oil supplies.”

But I don't think China sees it that way:

China warns U.S. about arms sales to Taiwan 09:0330/01/2010 China summoned the U.S. ambassador on Saturday warning him about consequences for bilateral relations of planned arms sales to Taiwan.

[eXpat]

Just one today
1st American State Bank of Minnesota

As of December 31, 2009, 1st American State Bank of Minnesota had approximately $18.2 million in total assets and $16.3 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.1 million.

1st American State Bank of Minnesota is the 16th FDIC-insured institution to fail in the nation this year, and the third in Minnesota. The last FDIC-insured institution closed in the state was Marshall Bank, N.A., Hallock , January 29, 2010.

http://www.taipeinews.net/story/597928

[kmann]

Year to date cost to DIF still at 3.2 billion. This one wasn't big enough to leave a mark in the lowest significant digit.

[kmann]

Friday February 12, 2010: nothing.
Maybe in honor of Abe Lincoln.
Maybe not.