Regulators Shut Down Banks in Illinois and Colorado
- Posted on July 8, 2011 at 8:56pm by
Tiffany Gabbay
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WASHINGTON (AP) — Regulators shut down a bank in Illinois and two in Colorado on Friday, boosting to 51 the number of U.S. bank failures this year.
The latest closings come even as the overall pace of bank failures has slowed as the economy gradually improves and banks work their way through the bad debt accumulated during the financial crisis. Through July 9 last year, regulators had closed 90 banks.
The Federal Deposit Insurance Corp. on Friday seized First Chicago Bank & Trust in Chicago and Colorado Capital Bank in Castle Rock, Colo., and Signature Bank, in Windsor, Colo.
Northbrook Bank & Trust Co., based in Northbrook, Ill., agreed to assume the deposits and a majority of the assets of First Chicago, which had about $959.3 million in assets and $887.5 million in deposits.
Northbrook paid the FDIC a premium of 0.50 percent for the failed bank’s deposits and agreed to buy about $880.7 million of First Chicago’s assets.
In addition, the FDIC and Northbrook Bank agreed to share losses on $699.8 million of First Chicago’s assets.
First Citizens Bank & Trust Co., based in Raleigh, N.C., assumed all the deposits and essentially all the assets of Colorado Capital, which had about $717.5 million in assets and $672.8 million in deposits.
The FDIC and First Citizens also agreed to share losses on $580 million of Colorado Capital’s assets.
“We look forward to working with existing clients and establishing new relationships in the days to come,” said B. Holding Jr., First Citizens Bank’s CEO said in a statement. The bank is a unit of First Citizens BancShares.
Points West Community Bank, based in Julesburg, Colo., agreed to assume Signature Bank’s $64.5 million in deposits and essentially all of its $66.7 million in assets.
The two bank failures are expected to cost the deposit insurance fund $590.4 million, combined.
In all, four banks have failed in Colorado this year. First Chicago is the fifth lender to collapse this year in Illinois.
In 2010 regulators seized 157 banks, the most in a year since the savings-and-loan crisis two decades ago.
The FDIC has said that 2010 likely would mark the peak for bank failures.
There were 140 bank failures in 2009, costing the insurance fund about $36 billion. The failures last year cost around $21 billion, a lower price tag because the banks that failed in 2010 were smaller 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, its deficit narrowed in the first quarter of this year and stood at about $1 billion as of March 31.
The FDIC expects the cost of resolving failed banks to total around $52 billion from 2010 through 2014.
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 last July.
The number of banks on the FDIC’s confidential “problem” list edged up to 888 in the January-March quarter from 884 as of Dec. 31. The 888 troubled banks is the highest number since 1993, during the savings-and-loan crisis. But that doesn’t mean the pace of bank failures is likely to accelerate again because, historically, only 19 percent of the banks on the “problem” list actually fail.
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CulperGang
Posted on July 11, 2011 at 10:49amAGENDA 21 WORKING!!! These smaller banks were deliberately being destroyed by the LARGEST banks which are ALL owned by Bilderberger members. Knowing this WHY are American politicians NOT taking steps to prevent this? ARE THEY ALL IN ON THE DESTRUCTION OF AMERICA????(with except maybe about five on the Hill.)
Report Post »CulperGang
Posted on July 11, 2011 at 11:11amhttp://www.gcnlive.com/………..right now founder of oathkeepers on radio………..LEOs are having a meaningful debate on their role vis-a-vis politicians abuses of the people. LEOS are standing with “We the People” by and large(well, there are always selfish dregs)…….that is good news considering that the ABUSES of the masses by politicians is COMING HARD AND FAST DAILY.
Report Post »Airgun
Posted on July 10, 2011 at 9:58pmJust more signs of the impending Barackalypse…
Report Post »dontbotherme
Posted on July 9, 2011 at 6:17pmThis is making me very uncomfortable. What’s going on in the backrooms?
Report Post »Guardog44
Posted on July 9, 2011 at 11:41amWelcome to the obamanation of desecration. The agenda maim kill destroy FREEDOM.
Report Post »fastfacts
Posted on July 9, 2011 at 9:26amWHERE IS THE RECOVERY:
Supposedly we are recovering but almost every indicator says differently. And yet the White House is ignorant of what is truly going on. Romney just put out a short ad talking about their elitist view on the American people thinking that Unemployment doesn’t matter: http://tiny.cc/w8ls0
Another thing that shows Obama‘s ignorance and elitist attitude is then he said that this jobs report shows that ’We are turning a corner’, that only corner is sending us back into a double dip recession: http://tiny.cc/12jg1
Report Post »Alfredo2131
Posted on July 9, 2011 at 7:20amThe Four Horsemen of Banking (Bank of America, JP Morgan Chase, Citigroup and Wells Fargo) own the Four Horsemen of Oil (Exxon Mobil, Royal Dutch/Shell, BP Amoco and Chevron Texaco); in tandem with Deutsche Bank, BNP, Barclays and other European old money behemoths.
Report Post »So who owns the banks/bank’s money?
The Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Seifs of Rome.
If you can beleive Quigley who writes: “these elites’ plan to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole…to be controlled in a feudalistic fashion by the central banks of the world acting in concert by secret agreements.”
Considering the number of bank foreclosures I wonder if this will eventually lead to a single “Megalithic Bank Corp” in the US within a decade or two.
saintjock
Posted on July 9, 2011 at 2:48amIm a vendor for the banks and credit unions here in AZ, its been an interesting ride so far. Have lost a few customers to the feds. Some Hostile takeovers, these folks dont even know that dont dont have a job come friday at 5:31 p.m on Friday evening.
Report Post »Fina Biscotti
Posted on July 9, 2011 at 2:06amThe bank in Chicago must have carried the loans for the fraudulent real estate dealings of Tony Rezko, Valerie Jarret and Obama’s former employer Alison Davis……
Report Post »leftcoastslut
Posted on July 9, 2011 at 12:37amsomething stinks, really bad…..
farikan is bottom up, government is top down
it doesn’t really matter about raising the debt ceiling, it will all be over soon, here drink the kool-aid. jim jones
Report Post »sodacrackers2
Posted on July 9, 2011 at 2:24pmJIm Jones was a communist too.
Report Post »V-MAN MACE
Posted on July 9, 2011 at 12:27amShut down the most criminal bank of them all…
Abolish the private Federal Reserve Bank.
Report Post »Donna
Posted on July 9, 2011 at 12:14amThey should be required to report total BRANCHES closed so we can accurately compare Great Depression 2.0 to Great Depression 1.0; banks in the first Depression were smaller and are more comparable to today’s megacorp bank branches.
But then, I’d be expecting the feds to actually have truth in statistics…..(nevermind)
Report Post »V-MAN MACE
Posted on July 9, 2011 at 12:30amThe Federal Reserve can‘t tell the truth about it’s OWN actions, let alone remove a mote from any other bank’s eye.
Report Post »thepatriotdave
Posted on July 9, 2011 at 12:05amWhy is it I do NOT trust these regulators that are closing down these banks? Did you know that the Obama administration is now into the Banking business itself. If memory serves me, it’s the Regions bank you see on TV all the time. We have to stop this madness and fire Obama. The only thing standing in our way is the Obama machine, and a lousy roster of candidates to choose from. None of the names mentioned can beat the Obama machine. This is a HUGE reason why we need Allen West to run for president. I don’t see any of the people running that have a prayer of beating the Obama machine. Congressman Allen West can!
Report Post »Please help put him on the ballot.
http://www.AMillionGoWest.com
This time, the country we save may be our own!
Snowleopard {gallery of cat folks}
Posted on July 9, 2011 at 12:48amYou have great reasons not to trusth them; the administration needs the banking system and the economy to totally collapse or come close, so when they rush in to ‘rescue’ the nation from their own disaster made reality, they have a solution in hand – most likely it will be a single national bank of the federal government.
Report Post »miles from nowhere
Posted on July 9, 2011 at 12:01amYou can all thank the corrupt Barney Frank and Chris Dodd for there Bills they passed with Fanny Mae and Freddie Mac, that the late worthless Bill Clinton signed into Law. What a mess they all created, we lost trillions in America becuase of these people.
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