Two More Bank Failures… And Counting…
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FacebookRemember 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
Published on November 10th, 2008 - 2 Comments
Filed under: Banking
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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!
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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
Comment by Larry — Nov 10th 2008 @ 1:41 pmBank 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!
Comment by Dave — Nov 10th 2008 @ 1:47 pm