Two More Bank Failures… And Counting…
Remember back in July when the projected number of bank failures for 2008 was sitting at nine? Well… Here we are in November, and banks #18 and #19 just closed their doors. According to an AP report this weekend:
Regulators shut down Houston-based Franklin Bank and Security Pacific Bank in Los Angeles on Friday, bringing the number of failures of federally insured banks this year to 19… The FDIC said all of Franklin Bank’s deposits will be assumed by Prosperity Bank of El Campo, Texas… Meanwhile, all of Security Pacific’s deposits will be assumed by Pacific Western Bank of Los Angeles… The FDIC will retain the remaining assets of the two banks for eventual sale.
Before you start getting nervous, just keep in mind that FDIC insurance limits were recently increased to $250k per depositor per insured bank.
Source: AP News
Disclaimer: Discover is a paid advertiser of this site.
Reasonable efforts are made to maintain accurate information. See the Discover online credit card application for full terms and conditions on offers and rewards.
Filed under: Banking
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
Related articles...
» Ally Financial Failed the Fed’s Stress Test» The Recent History of Bank Failures
» The Cost of a Failed House Deal
» Bank Failure Rates
» Bank Failures: Two More Just Bit the Dust
» Is Your Credit Union Safe?
» Banks at Risk of Failure
» Risk-Free Banking
Was this article useful? Please sign up to receive our content via e-mail:
2 Responses to “Two More Bank Failures… And Counting…”
Leave a Reply
Top Cards by Category
Earn 100 Reward Dollars after you make $1,000 in purchases in the first three months of Cardmembership.
Earn 25K Membership Rewards(R) points after you spend $2,000 during your first three months of Card membership.
Consumer friendly credit card with a great low rate of 7.25% and save on interest charges. No balance transfer fees and no annual fee.
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
Consumer friendly credit card with a great low rate of 7.25% and save on interest charges. No balance transfer fees and no annual fee.
Limited Time Offer: Get 25,000 Membership Rewards(R) points after you spend $5,000 in the first three months of Card membership. Enroll and select a qualifying airline to receive up to $200 annually in statement credits for incidental fees, such as checked bags and in-flight refreshments, charged by the airline.
The new Discover it card is out to change the way people think about credit cards. No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And Discover won't increase your APR for paying late.*
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math
- Dish Network Customer Service SUCKS
- $8,000 Homebuyer Tax Credit
- Pay Off Mortgage Early or Invest?
- How to Claim the First-Time Homebuyer Tax Credit
- Termite Control: Sentricon vs. Termidor
- How Much Should You Pay a Babysitter?
- Ethanol Blended Gas = Lower Mileage?
- Reduced Credit Limits? Share Your Experience
- $15,000 Homebuyer Tax Credit
- Will Mac OS X Lion Kill Quicken 2007?
- Buying Furniture off the Back of a Truck
How to save money on insurance
- How I cut my spending in half to take a job I loved
- Working longer: Fallback or fallacy?
- More money, more happiness: Do you think money can buy happiness?
- Overdraft fees soared to $32 billion in 2012
- How do you combat prom inflation?
- How should you choose a bank? Look in the mirror.
- The cost of clean water
- College debt 101
- Is it possible to live debt free?
- How to prepare for a home appraisal
November 10th, 2008 at 1:41 pm
I live in Houston and happen to have a friend who worked for Franklin Bank and he said that they have been struggling for some time now. Luckily he doesn’t work for them anymore and he got out before they went under but when he heard ther news it was no surprise to him.
He said that a lot of banks are still hiding bad assets off thier balance sheets and are sort of ‘testing the waters’ with the Feds in order to see what they can and cannot get away with.
Larry
November 10th, 2008 at 1:47 pm
Bank deposits about 7 trillion – source wikianswers
According to the FDIC 2007 Annual Report, the FDIC has only $53 billion to cover losses
Do your own math!