Regulators closed eight banks, bring the total bank failure for the year to 118.
Recently, Federal and State regulators closed eight banks, four located in California, two in Florida and one each in Virginia and Illinois, due to inadequate capital and mounting loan losses. Assets of these bank failures totaled $4.41 billion, and the cost to the FDIC is estimated to be $473.5 million. This brings the total number of bank failures for August to 10. The pace of bank failure this year is well ahead of 2009, which saw a total of 140 banks closed amid the recession and mounting loan defaults.
A failing bank in Chicago has started raising some eyebrows in the media and in congress with its ties to president Obama and several progressive organizations. The bank in question, Shore Bank, received $35 million in stimulus money. Two weeks ago it was taken over by the FDIC. Three banks alone in Illinois were taken over by the FDIC in August.
Do you think the pace will quicken on bank closings with the economy, stay the same, or go down?
|FDIC Bank Failures|
|Year||No. of Failed Banks||Total Assets of Failed Banks||Loss to FDIC’s DIF|
|Bank Name||City||State||CERT #||Closing Date||Updated Date|
|Sonoma Valley Bank||Sonoma||CA||27259||20-Aug-10||20-Aug-10|
|Los Padres Bank||Solvang||CA||32165||20-Aug-10||20-Aug-10|
|Butte Community Bank||Chico||CA||33219||20-Aug-10||20-Aug-10|
|Pacific State Bank||Stockton||CA||27090||20-Aug-10||20-Aug-10|
|Imperial Savings and Loan Association||Martinsville||VA||31623||20-Aug-10||20-Aug-10|
|Independent National Bank||Ocala||FL||27344||20-Aug-10||20-Aug-10|
|Community National Bank at Bartow||Bartow||FL||25266||20-Aug-10||20-Aug-10|
|Palos Bank and Trust Company||Palos Heights||IL||17599||13-Aug-10||17-Aug-10|