Feds Close 8 Banks in 5 States
Regulators on Friday shut down eight banks - three in Florida, two in California, and one each in Massachusetts, Michigan and Washington - putting the number of U.S. bank failures this year at 50.
The Federal Deposit Insurance Corp. took over the three Florida banks: Riverside National Bank in Fort Pierce, with $3.4 billion in assets; First Federal Bank of North Florida in Palatka, with $393.3 million in assets; and AmericanFirst Bank in Clermont, with assets of $90.5 million.
TD Bank Financial Group, a division of Canada's TD Bank, agreed to acquire the deposits and nearly all the assets of the three Florida banks.
The FDIC also seized Innovative Bank, based in Oakland, Calif., with about $269 million in assets; Tamalpais Bank of San Rafael, Calif., with about $629 million in assets; City Bank, based in Lynnwood, Wash., with about $1.1 billion in assets; Butler Bank in Lowell, Mass., with $268 million in assets; and Lakeside Community Bank in Sterling Heights, Mich., with $53 million in assets.
Los Angeles-based Center Bank agreed to assume the assets and deposits of Innovative Bank. San Francisco-based Union Bank is acquiring the assets and deposits of Tamalpais Bank. Whidbey Island Bank, based in Coupeville, Wash., is assuming the deposits of City Bank and $704.1 million of its assets. People's United Bank in Bridgeport, Conn., agreed to assume the assets and deposits of Butler Bank.
The FDIC couldn't find a buyer for Lakeside Community Bank. First Michigan Bank in Troy, Mich., will take over the failed bank's direct deposit operations for federal payments, such as Social Security and veterans' benefits.
The failure of Riverside National Bank is expected to cost the deposit insurance fund $491.8 million. For the other banks, the estimated costs: First Federal Bank of North Florida, $6 million; AmericanFirst Bank, $10.5 million; Innovative Bank, $37.8 million; Tamalpais Bank, $81.1 million; City Bank, $323.4 million; Butler Bank, $22.9 million; and Lakeside Community Bank, $11.2 million.
Depositors' money is insured up to $250,000 per account by the FDIC, which is backed by the government.
Last year, 140 banks failed in the U.S. That was the highest annual number since 1992 during the peak of the savings and loan crisis. The failures last year cost the FDIC's insurance fund more than $30 billion.
Twenty-five banks failed in 2008 and three in 2007.
FDIC Chairman Sheila Bair has predicted that the number of bank failures will peak this year and be slightly more than in 2009.
By AP Business Writers Tim Paradis and Marcy Gordon
© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Federal Deposit Insurance Corp. took over the three Florida banks: Riverside National Bank in Fort Pierce, with $3.4 billion in assets; First Federal Bank of North Florida in Palatka, with $393.3 million in assets; and AmericanFirst Bank in Clermont, with assets of $90.5 million.
TD Bank Financial Group, a division of Canada's TD Bank, agreed to acquire the deposits and nearly all the assets of the three Florida banks.
The FDIC also seized Innovative Bank, based in Oakland, Calif., with about $269 million in assets; Tamalpais Bank of San Rafael, Calif., with about $629 million in assets; City Bank, based in Lynnwood, Wash., with about $1.1 billion in assets; Butler Bank in Lowell, Mass., with $268 million in assets; and Lakeside Community Bank in Sterling Heights, Mich., with $53 million in assets.
Los Angeles-based Center Bank agreed to assume the assets and deposits of Innovative Bank. San Francisco-based Union Bank is acquiring the assets and deposits of Tamalpais Bank. Whidbey Island Bank, based in Coupeville, Wash., is assuming the deposits of City Bank and $704.1 million of its assets. People's United Bank in Bridgeport, Conn., agreed to assume the assets and deposits of Butler Bank.
The FDIC couldn't find a buyer for Lakeside Community Bank. First Michigan Bank in Troy, Mich., will take over the failed bank's direct deposit operations for federal payments, such as Social Security and veterans' benefits.
The failure of Riverside National Bank is expected to cost the deposit insurance fund $491.8 million. For the other banks, the estimated costs: First Federal Bank of North Florida, $6 million; AmericanFirst Bank, $10.5 million; Innovative Bank, $37.8 million; Tamalpais Bank, $81.1 million; City Bank, $323.4 million; Butler Bank, $22.9 million; and Lakeside Community Bank, $11.2 million.
Depositors' money is insured up to $250,000 per account by the FDIC, which is backed by the government.
Last year, 140 banks failed in the U.S. That was the highest annual number since 1992 during the peak of the savings and loan crisis. The failures last year cost the FDIC's insurance fund more than $30 billion.
Twenty-five banks failed in 2008 and three in 2007.
FDIC Chairman Sheila Bair has predicted that the number of bank failures will peak this year and be slightly more than in 2009.
By AP Business Writers Tim Paradis and Marcy Gordon
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We are headed to 200 to 250 bank failures this year. For those of you that don't understand how terrible this is, before 2007 the failure rate was one or two, some years no failures. I don't know what is going to happen but it can't be good.
"The FDIC also seized Innovative Bank, based in Oakland, Calif., with about $269 million in assets; Tamalpais Bank of San Rafael, Calif., with about $629 million in assets; City Bank, based in Lynnwood, Wash., with about $1.1 billion in assets; Butler Bank in Lowell, Mass., with $268 million in assets; and Lakeside Community Bank in Sterling Heights, Mich., with $53 million in assets."
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I am not a Banker. I do not have a degree in finance. But, I have always thought that if one can claim "Assets," that would mean they are in the Black...not in the Red. Can anyone tell me why our Government keeps taking??? Just like the car dealers....One day they are owned by private people, the next they are handed a "Pink slip" by the Federal Government...... How is this a capitalistic, competitive, privatized economy???
This is a genuine question, looking for a serious answer and understanding. Thanks........