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Regulators Close Three More Banks, Total Now 68 for 2011

Regulators Close Three More Banks, Total Now 68 for 2011

WASHINGTON (The Blaze/AP) — Regulators on Friday closed one bank each in Florida, Georgia and Illinois, lifting to 68 the number of U.S. bank failures this year.

The pace of closures has eased in 2011 as the economy has slowly improved and banks work their way through the bad debt accumulated in the Great Recession. By this time last year, regulators had shuttered 118 banks.

The Federal Deposit Insurance Corp. seized Lydian Private Bank, based in Palm Beach, Fla., with $1.7 billion in assets and $1.24 billion in deposits. Also shuttered were two smaller institutions: First Southern National Bank in Statesboro, Ga., with $164.6 million in assets and $159.7 million in deposits, and First Choice Bank in Geneva, Ill., with $141 million in assets and $137.2 million in deposits.

Miami-based Sabadell United Bank agreed to assume the assets and deposits of Lydian Private Bank. Heritage Bank of the South, based in Albany, Ga., is assuming the assets and deposits of First Southern National Bank. And Inland Bank & Trust, based in Oak Brook, Ill., is acquiring the assets and deposits of First Choice Bank.

The failure of Lydian Private Bank is expected to cost the deposit insurance fund $293.2 million. First Southern National Bank’s failure is expected to cost $39.6 million and First Choice Bank’s $31 million.

Florida, Georgia and Illinois have been among the hardest-hit states for bank failures.

Twenty-nine banks were shuttered in Florida last year. The shutdown of Lydian Private Bank brought to 10 the number of bank failures in the state this year. Regulators closed 16 banks each in Georgia and Illinois last year. First Southern National Bank is the 17th Georgia lender shut down this year, while First Choice Bank is the 7th in Illinois.

California also has seen large numbers of bank failures.

In all of 2010, regulators seized 157 banks, the most in any year since the savings-and-loan crisis two decades ago. Those failures cost around $21 billion. The FDIC has said 2010 likely marked the peak for bank failures from the Great Recession.

In 2009, there were 140 bank failures that cost the insurance fund about $36 billion, a higher price tag than in 2010 because the banks involved were bigger on average. Twenty-five banks failed in 2008, the year the financial crisis struck with force; only three were closed in 2007.

From 2008 through 2010, bank failures cost the fund $76.8 billion. The deposit insurance fund fell into the red in 2009. With failures slowing, the FDIC’s deficit narrowed in the first quarter of this year; it stood at about $1 billion as of March 31.

Depositors’ money – insured up to $250,000 per account – is not at risk, with the FDIC backed by the government. That insurance cap was made permanent in the financial overhaul law enacted in July 2010.

Comments (30)

  • Kara_ite
    Posted on September 1, 2011 at 10:57am

    BRETTG123 – - – I have spoken to people who actually walk in the bank and send everyone home. They even use the bank’s coffee vendors products and use whatever is there and when the vendors send the bank the bill for all the coffee that the FDIC employees have used, it is sent back to them. The FDIC will not pay for what it is using.

    Report Post » Kara_ite  
  • Kara_ite
    Posted on September 1, 2011 at 10:47am

    The F.D.I.C. is broke. They have around 900 banks on their list for closure. I need to apply for a job with the F.D.I.C. Looks like they will be busy.

    Report Post » Kara_ite  
  • arielle simmons
    Posted on August 22, 2011 at 6:45pm

    the only way to fix this is to END THE FED! who da thunk it?

    Report Post »  
  • arielle simmons
    Posted on August 22, 2011 at 6:43pm

    thanks dodd-frank act!

    Report Post »  
  • SamIamTwo
    Posted on August 22, 2011 at 10:54am

    Federal take over in order to set up a one banking system, eh?…headed for one world bank and one world currency, eh?

    Report Post » SamIamTwo  
    • Bonnieblue2A
      Posted on August 22, 2011 at 3:51pm

      That is their plan, exactly. The euro-zone will be first under the 4th Reich and the North American Union will be next. China will agree to one world currency as soon as long as it is their currency which becomes the world reserve.

      Report Post »  
  • Reverend_Child
    Posted on August 22, 2011 at 2:28am

    Um… sorry to say, but Fatjack kinda nailed that one. Imma go to my grave now, wondering if Crapgiver had all the answers to my every woe. Alas, I’ll never know. Capped out by about the second sentence…

    Report Post »  
  • AmeriCat
    Posted on August 22, 2011 at 1:44am

    Rock-solid small and medium sized banks are being “closed,”
    consolidated…taken over by the large banks,
    which clearly have an agenda!

    Report Post »  
  • 1TrueOne55
    Posted on August 21, 2011 at 9:08pm

    This is an OBAMA Gov’t Business and all the items are made in China and Stolen during delivery. Didn‘t you hear about the Gov’t’s program called Fast and Furious patterned after the Vin Deisel movie of the same name. They have to pay for all those Guns that they sent to Mexico they were about 1-2k apiece you know…

    Report Post » 1TrueOne55  
  • 1TrueOne55
    Posted on August 21, 2011 at 9:02pm

    @totallyfedup:

    He looks like he can’t even afford a good keyboard because the “Zionists” stole all the working ones…

    Report Post » 1TrueOne55  
  • fatjack
    Posted on August 21, 2011 at 8:39pm

    Oh Crap I bet 9 out of 10 never read your post. caps caps caps what with the caps.

    Report Post » fatjack  
  • blackslaw6th
    Posted on August 21, 2011 at 1:34pm

    http://www.geocities.com/rebornempowered/mandrake/mandrake.htm also http://www.jaegerresearchinstitute.org/articles/formula.htm
    These come from the book “The Creature from Jekyll Island”; if you havent read it yet…you should!

    Report Post » blackslaw6th  
  • totallyfedup2
    Posted on August 21, 2011 at 10:02am

    Well CRAPGIVER, you definetly lived up to your name on this post. A GIVER of CRAP ! ! !

    Report Post » totallyfedup2  
  • PleaseStartBrainb4engagingmouth
    Posted on August 20, 2011 at 6:44pm

    Banks are just businesses .. and a percentage of every industry fail all of the time .. the thing about the banking industry is it is one of the more heavily monitored and regulated by the Government. If Government regulations and regulators solved problems .. then why so many failures? Good government has to include common sense simple regulations .. “thou shall not steal ” and a educated public that take responsiblity for their own decisions.

    Report Post »  
    • Moonbat
      Posted on August 21, 2011 at 12:33pm

      @ Please

      Actually, we’ve been agressively deregulating banks for thirty years. The behavior that led the current mortgage crisis wouldn’t have been possible in the fifties — it would have been illegal. Specific Acts of Congress made adjustable-rate mortgages legal, erased the lines between S&Ls and investment banks, and eased capital requirements for banks. Plus, much of the damage was driven by the derivative market, which is completely unregulated.

      Laws are written to favor big banks, because the financial industry writes giant checks to politicians on both sides of the aisle. Don‘t you think they get what they’re paying for? We don’t need less government interference in government — we need less business interference in government.

      Report Post »  
  • enderwiggen
    Posted on August 20, 2011 at 1:39pm

    BrettG123 nailed it exactly. It isn’t the economy that is feared by business, it’s the government. Whatever their motive is it isn’t protecting the people. dmc

    Report Post »  
  • paulusmaximus
    Posted on August 20, 2011 at 10:08am

    Small local bank shuttered and the assets assumed by larger corporate banks, banks add a large number of fees and charges to your account, The federal government wants to tax the money in those accounts ( Twice for your savings then.),the u.n. wants to allocate and control the worlds money supply and the Federal reserve prints all of US to poverty particularly those on fixed income, the expendable old people. My my how we have changed!!

    Report Post » paulusmaximus  
  • paulusmaximus
    Posted on August 20, 2011 at 9:57am

    Why not pay for you adds! If you steal form the Blaze then why should I trust you!

    Report Post » paulusmaximus  
  • cntrlfrk
    Posted on August 20, 2011 at 9:08am

    ‘

    Banks are being shut down because Obama-Dodd-Frank-Geithner created legislation that moved the goalposts and did not allow banks time to meet the new demands.

    Pure thuggery.

    .

    Report Post » cntrlfrk  
    • BrettG123
      Posted on August 20, 2011 at 10:12am

      I work for a company that provides data processing services to the smaller banks, the ones the Feds have been shutting down. They do not shut them down because the banks failed, they shut them down because they do not meet the requirements the agency has set. The way they do it the bank doesn’t even know about it. The agents walk into the bank during business areas, send all the employees home immediately, lock the doors and take it over. The last one of our clients they took over had some large loans, but they were loans that where the clients had been paying faithfully for years with never a late payment, but they were still counted againts them. The bank very well could have succeeded, but they never got the chance. Auditors set whatever criteria they want and if the banks don’t meet it they have the power to shut them down. This isn’t the only way they put banks out of business though. Nearly half of the programming I am asked to do these days is not for the banks or their customers, but it is to meet everchanging, everexpanding governmental regulatory requirements, that often are silly to the average common sense person, but it doesn’t matter since they answer to no one. They set whatever rules they want and the banks must comply making it harder every year for them to operate profitably. The auditors are our most demanding clients and they pay us NOTHING! The governement has been become a greater threat to my job security then the economy at this point.

      Report Post »  
  • floradaze
    Posted on August 20, 2011 at 7:44am

    I got curious when a local bank building that was only about six years old became the office of a Community Action Center, a place where you go to get someone else to pay your utility bill. Can you say Acorn.
    So I did some checking on the internet. Of ten or so banks closed by the Feds in one month, more than five of them were given over to banks that had gotten bailed out and hadn’t paid the money back to the taxpayers.???
    Those were the ones I could follow.
    I’m not a brilliant money person, but then I wouldn’t have gotten taken in by Bernie Madoff.

    Report Post »  
  • dalefar
    Posted on August 20, 2011 at 7:38am

    Who is backing up the FDIC?

    Report Post »  
    • darkrage000
      Posted on August 21, 2011 at 9:01am

      Our ever dwindling pocketbooks

      Report Post »  
    • 1TrueOne55
      Posted on August 21, 2011 at 9:19pm

      China

      Report Post » 1TrueOne55  
    • Bonnieblue2A
      Posted on August 22, 2011 at 4:05pm

      Insurance paid by the banks. The problem with the “reverse bank run” of people pulling their money from the markets and putting it in cashsavings/checking accounts is that the banks have to increase their reserves with the FDIC. Money market savings accounts are not generally covered by FDIC insurance!

      http://www.therubins.com/legal/fdic.htm

      http://www.moneyedup.com/2011/03/fdic-insurance-limits/

      I hope those with cash savings understand that if/when their bank fails to the extent that it requires FDIC reimbursement that you may only get a few pennies to the dollar of your deposits and that could take upwards of several months.

      Report Post »  
    • BloodSweatandTears
      Posted on August 23, 2011 at 2:58am

      You/we are. You pay it by not receiving any interest on your money. No interest = free money, or really a free loan to the government as well. No interest for your money, is sort of a “reversed,” tax. In college my friends’ dad had a bank. He said they were interested in the penny fractions. Made cent$,
      Today though, the desperation really shows. Another nationalization. health, student loans, fannie freddie, Solvent GM car dealerships put out…your friendly local bank.

      Report Post »  
  • Bill Rowland
    Posted on August 20, 2011 at 6:39am

    The banks are losing because they made questionable loans, But real estate agents bear part ot the blame.
    I know of one case where the buyer could not really afford the home. The agent talked them into taking a loan where all they paid was interest, no principal, and assured the buyer that the increase in the value of the property would allow them to sell for a profit in 5 years.
    They lost the house.
    Was it the bank, the agent or the buyer who was at fault?

    Report Post »  
    • Mateytwo Barreett
      Posted on August 20, 2011 at 11:40pm

      The purchaser. Anybody that couldn’t see what was happening – had their blinders on and sleep mask on. Jimmy Carter was my introduction to RE loans 18.75% , after a 23% construction loan. I bring this up because the interest only loans at 5-8% were just ploys to allow the game to go on a couple more years after the market was saturated. But what els was going on, Bill? Think about the taxes a $40,000 house will give you half as much tax proceedsas $80,000 and a1/4 of $160,000.
      Point being that the government was has been and will be the determining force.
      Another thing, remember the media, your friends?! Think about what they were spewing right up to Sept. 2008. Everything is great, b[g job, big paycheck, big car, big house, big vacations, kids in every sport, black credit cards, no worries! Home equity loans, re-fis, interest only, reverse, upside down and backwards.You deserve it!, never fails ” I make $50K a mo. and don’t get out of bed!”
      And the dumbest line known to man- drum roll, please- “You can spend your way to prospertity”!
      Bah- bahhhh-bbaaahhh! Sheep to the slaughter.

      Report Post » Mateytwo Barreett  
    • Lisachristine
      Posted on August 21, 2011 at 8:26am

      All three. The bank for loaning to someone who can’t afford it, the agent just to make the commission and the buyer who knows it isn’t affordable and takes it anyway. The bank used to have strict criteria when I bought my home in 1979. I bairly got the loan with great credit , 2 incomes, 25k down on a 70k loan and the int . rate was 11 1/2 then. Too much bull s–it going around. Where are people with the right stuff anymore?Even illegals were getting loans! We picked up several forclosures that were just left for dead when the police started checking id’s in my area.

      Report Post »  
    • SamIamTwo
      Posted on August 22, 2011 at 11:01am

      I’ve always told my family that your monthly payments on your home should be less than 20% of your gross monthly pay…so you can afford to live in the dam thang…have HC…etc etc.

      The DEMS allowed that number to go to what 60%…only a fool would buy into that…we‘ve raised a generation of idiots that don’t know much and their parents didn’t explain to them what they should have learned during the carter period…live within your means, stay out of debt. Pay off that car loan and use the CC for emergencies and keep the CC paid off.

      I see people using the CC to purchase food…amazing. I use cash…

      Report Post » SamIamTwo  

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