FDIC closes Freedom Bank of Georgia in 17th bank failure of 2009

March 7, 2009 by · Leave a Comment
Filed under: Bank Failure 

Another one bites the dust.  At this rate we are going to far exceed the 25 bank failures we had in 2008.  Local and regional banks are going to be hit hard this year.

News:

U.S. regulators closed Freedom Bank of Georgia bank on Friday, the 17th U.S. bank to fail this year as the struggling economy and falling home prices take their toll on financial institutions.

The Federal Deposit Insurance Corp said Freedom Bank of Georgia had $173 million in assets and $161 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $36.2 million.

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Freedom Bank of Florida is the 17th U.S. bank failure of the year

November 1, 2008 by · Leave a Comment
Filed under: Bank Failure 

Almost like clockwork that we see a bank failure at the closing of the day on Friday.  Freedom Bank of FL has been shut down by the FDIC.  At the time of the closing they had $254 million dollars in deposits.  These customer deposits have been purchased by the Fifth Third Bank.  Of the $287 millon in assets, Fifth Third will purchase only $32 millon of them and the FDIC will be retaining the rest.

FDIC Release:

Freedom Bank, Bradenton, Florida, was closed today by the Commissioner of the Florida Office of Financial Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Fifth Third Bank, Grand Rapids, Michigan, to assume all of the deposits of Freedom Bank.

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Georgia’s Alpha Bank & Trust is 16th U.S. Bank Failure in 2008

October 24, 2008 by · Leave a Comment
Filed under: Bank Failure 

Another one bites the dust……..  Alpha had $346 million dollars in customer deposits at the time.  This marks the 16th failure this year.  Streans Bank of Minnesota will assume the deposits for this failed bank.

FDIC Release:

Alpha Bank and Trust, Alpharetta, Georgia, was closed today by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume the insured deposits of Alpha Bank & Trust.

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PNC Financial buying National City Bank for $5.58 billion dollars

October 24, 2008 by · Leave a Comment
Filed under: Bank Failure 

 PNC Financial Services Group Inc. said Friday it is acquiring National City Corp. for $5.58 billion, in one of the first concrete signs of how banks could use fresh investments from a U.S. government bailout program.

The deal comes within hours of PNC Financial receiving approval for $7.7 billion in cash from the government under the $750 billion government program aimed at relieving the ongoing credit crisis.

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13th U.S. Bank Failure of this year – Main Street Bank of Northville, Michigan

October 13, 2008 by · Leave a Comment
Filed under: Bank Failure 

Another small bank has gone bust. They had about $17 million in assets which were acquired in full by Monroe Bank & Trust. With the Treasury’s statement that they were going to only bailout “healthy” banks I would assume that means many smaller banks will be allowed to fail because they are not critical for our financial system or in laymen terms “too big to fail”.

FDIC Press Release:

Main Street Bank, Northville, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC approved the assumption of all the deposits of Main Street Bank, by Monroe Bank & Trust, Monroe, Michigan.

All depositors of Main Street Bank, including any with deposits in excess of the FDIC’s insurance limits, will automatically become depositors of Monroe Bank & Trust, and they will continue to have uninterrupted access to their money. Depositors will still be insured with the new institution. Therefore, there is no need for customers to change their banking relationship to retain deposit insurance.

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