11/01/09 Stockholm, Sweden – This weekend nine more banks were seized by the FDIC, the highest number in a single day since the crisis began. There have now been 115 total failures in 2009, the most in 17 years.
One of the banks, Cal National, is the 4th largest bank failure so far this year. It has 68 branches and ran the kind of operation that sounds like a textbook real estate bubble-serving bank including, “five times as much foreclosed property on its books and twice as many non-current loans as it had a year earlier” and it “lost about $500 million on heavy investments in Fannie Mae and Freddie Mac preferred shares.” It’s a bank that probably didn’t get what it wanted, but pretty much got what it deserved.
The other banks are:
* Bank USA, National Association (Arizona)
* Citizens National Bank (Texas)
* Community Bank of Lemont (Illinois)
* Madisonville State Bank (Texas)
* North Houston Bank (Texas)
* Pacific National Bank (California)
* Park National Bank (Illinois)
* San Diego National Bank (California)
All nine were held by FBOP Corporation, a multi-bank holding company based in Illinois. Now their combined $18 billion in assets and $15 billion in deposits will be acquired by US Bank NA of Minneapolis, the main subsidiary of US Bancorp.
More coverage is available from Reuters on the nine banks seized in the crisis’ largest one-day haul.
Rocky Vega
Rocky Vega is publisher of The Daily Reckoning. Previously, he was founding publisher of UrbanTurf and RFID Update, which he operated from Brazil, Chile, and Puerto Rico, and associate publisher of FierceFinance. He specialized in direct marketing at MBI, facilitated MIT Sloan School of Management programs, and has been featured on CBS. Vega graduated with honors from Harvard University, where he was on the board of Let’s Go Publications and directed business programs involving McKinsey, Goldman Sachs, and Harvard Business School faculty. He is also enrolled at the Stockholm School of Economics.
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What banks do you think are safe to have accounts with?
No bank is safe, but you can check out the status of your banks’ loan portfolio at this website.
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