The stock market should also have been closed a few days ago. Panic is not a strategy. If I owned a bank at this time, I would not lend money.
On Oct 10, 10:55�pm, "\"Lone Wolf\"" <[EMAIL PROTECTED]> wrote: > Illinois, Michigan Banks Fail; Boosts Closings to 15 (Update1) > > By Alison Vekshin and Ian Katz > > Oct. 10 (Bloomberg) -- Banks in Illinois and Michigan were closed by > regulators today, boosting to 15 the failures this year, as tightening > credit and a deepening housing slump accelerate government action to > shore up financial institutions. > > Meridian Bank of Eldred, Illinois, with $39 million in assets and $37 > million in deposits, was closed by the state and the Federal Deposit > Insurance Corp. was named receiver. National Bank of Hillsboro, > Illinois, acquired the deposits and four branches will reopen tomorrow > and one on Oct. 14, the FDIC said. > > Main Street Bank of Northville, Michigan, with $98 million in assets > and $86 million in deposits, was shut by the state and turned over to > the FDIC. Monroe Bank & Trust of Monroe, Michigan, acquired the > deposits and tomorrow will open the two offices as branches, the FDIC > said in a statement. > > ``The dramatic downturn in the residential real estate market > unfortunately knocked the wind'' out of Main Street, Ken Ross, > commissioner of Michigan's Office of Financial and Insurance > Regulation, said in a statement. > > Regulators have now closed the most banks in 15 years, and the > collapses of Washington Mutual Inc. and IndyMac Bancorp Inc. were > among the biggest in history. The deepening housing slump and tight > credit led to enactment of a $700 billion bank rescue plan, and > triggered a bankruptcy by Lehman Brothers Holdings Inc. and > nationalization of Fannie Mae and Freddie Mac. > > Insurance Fund > > The FDIC said closing Main Street will cost the deposit insurance fund > $33 million to $39 million while closing Meridian will cost $13 > million to $14.5 million. The fund had $45.2 billion at the end of the > second quarter. > > In Michigan, Monroe Bank agreed to pay a premium of 1 percent for Main > Street's deposits, the FDIC said. Monroe also will buy about $16.9 > million in assets and has a 90-day option to acquire $1.1 million > additional assets of the failed bank. > > National Bank will purchase about $7.5 million of Meridian's assets > and didn't pay the FDIC a premium for the right to assume all of the > failed bank's assets, the FDIC said. The FDIC retains the remaining > assets. > > Meridian's four offices in the Illinois towns of Altamont, Carlyle and > Eldred will reopen for normal hours tomorrow, and the Alton office > will reopen Oct. 14, the FDIC said. > > All depositors of Main Street and Meridian will have uninterrupted > access to their money, which will continue to be insured, the FDIC > said. > > Deposit Premiums > > The FDIC insures deposits of up to $250,000 per depositor per bank and > a similar amount for some retirement accounts at 8,451 institutions > with $13.3 trillion in assets. The agency is doubling the premiums > banks pay to replenish the reserves amid forecasts failures through > 2013 will cost almost $40 billion. > > Washington Mutual, the biggest savings and loan, sold its assets to > JPMorgan Chase & Co. Sept. 25 after customers drained $16.7 billion in > deposits in less than two weeks. Wachovia Corp., the sixth-biggest > bank, agreed to be acquired by Wells Fargo Co. for $11.7 billion, > trumping an FDIC-brokered sale of banking operations to Citigroup > Inc. > > The FDIC is running a successor to California lender IndyMac Bancorp, > closed in July in the fourth-largest bank seizure, and easing mortgage > terms for more than 1,200 borrowers. The failure drained more than 10 > percent from the U.S. insurance fund. > > `Problem' Banks > > The agency in August said 117 banks were classified as ``problem'' in > the second quarter, a 30 percent jump from the first quarter. The > agency doesn't name the ``problem'' lenders. > > Before today's action, 39 banks failed since October 2000, according > to a list at fdic.gov. > > Regulators this year also closed Ameribank in Northfork, West > Virginia, on Sept. 19; Silver State Bank of Henderson, Nevada, on > Sept. 5; Integrity Bank of Alpharetta, Georgia, Columbian Bank and > Trust of Topeka, Kansas, and First Priority Bank of Bradenton, > Florida, in August; Reno-based First National Bank of Nevada and > Newport Beach, California-based First Heritage Bank in July; Staples, > Minnesota-based First Integrity Bank and ANB Financial in Bentonville, > Arkansas, in May; Hume Bank in Hume, Missouri, in March; and Douglass > National Bank in Kansas City, Missouri, in January. > > To contact the reporters on this story: Alison Vekshin in Washington > at [EMAIL PROTECTED]; Ian Katz in Washington at > [EMAIL PROTECTED] --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. 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