This past Friday seven additional banks went under, for a total of 64 failures so far this year. The FDIC took over the banks, including three in Puerto Rico which account for roughly a fourth of the island’s bank assets.
From The Wall Street Journal:
“Three of the banks […] were located in Puerto Rico and held about $21 billion in assets. That’s about a quarter of the assets of the 10 banks headquartered on the island.
“Regulators also shuttered CF Bancorp in Port Huron, Mich., which had 22 branches, $1.65 billion of assets, and $1.43 billion of deposits; Champion Bank in Creve Coeur, Mo., which had $187.3 million in assets and $153.8 million of deposits; BC National Banks in Butler, which had just $67.2 million of assets and $54.9 million of deposits; and Frontier Bank in Washington, which $3.5 billion of assets and $3.1 billion of assets…
“…The seven failures cost the FDIC’s deposit insurance fund more than $7 billion.”
By Saturday, FDIC Chairman Sheila Bair was already out getting ahead of the story in public with Puerto Rico Governor Luis Fortuno, trying desperately to put a positive spin on the matter. She described it as an optimistic “inflection point,” and that there are “signs of repair.”
It’s hard to buy that story though. Another post shows that this is the largest day of bank failure since back in July of 2008. That was when IndyMac cost the FDIC $8 billion. Hopefully any future “signs of repair” will cost the FDIC a whole lot less.
You can see more details on the closures, as well as an interactive map, in The Wall Street Journal’s tracking of bank failures.
The Daily Reckoning
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let?s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
Well said Rocky.
If money were what really matters, Warren Buffett would have no peer. He has had unparalleled success in this world; surely he has a first-class ticket to the next. But what if Buffett's 84 years of luck turn on him now? Bill Bonner explores...
A new study out of Sweden will have you thinking twice about making that phone call. The study analyzed cases of glioma, the most common form of brain tumor, in patients diagnosed in the years 1997–2003 and 2007–09. Stephen Petranek has more...
Using Nassim Taleb's five sources of fragility, Charles Hugh Smith ranks the U.S. a 4/5 on the fragility scale. Read on to see what happens when the gum and duct tape holding the economy together breaks down...
Our own Chris Mayer tells Henry Bonner why he sees no big theme in US stocks today -- just hidden opportunities for those who know where to look. Read the interview here...
After swooning in October, semiconductor stocks put in a screaming recovery. And these things went gangbusters in February, blasting past the broad market. All told, semiconductors have posted gains north of 12% over the past six months, while the S&P crept along at 6%.