Bank failures #26, 27, 28 and 29 for the year were American Southern Bank of Kennesaw, Georgia, Michigan Heritage Bank of Farmington Hills (OTCPK:MHBC), First Bank of Beverly Hills and First Bank of Idaho of Ketchum, Idaho. The cost to the FDIC from the three failures will be $48.7, $50 million, $394 and $113 million, respectively.
As the economy's green shoots are hyped by the chatterboxes on TV and the administration, in one week the FDIC's Deposit Insurance Fund has lost over $600 million on four bank bailouts. As the DIF only had $19 billion at December 31, Zero Hedge would wager there is little to no money left to insure systemic deposits, especially with bank neet need to use the TLPG any longer, thus depriving the FDIC of a much needed source of revenue.
Additionally on the bank failure front, $1.6 billion Eastern Financial Florida Credit Union was placed in NCUA conservatorship.
April 24, 2009, Alexandria, Va. -- The National Credit Union Administration (NCUA) today assumed control of the operations of Eastern Financial Florida Credit Union, a state-chartered, federally insured credit union headquartered in Miramar, Florida.
Eastern Financial Florida Credit Union was originally chartered in 1937 and today serves Broward, Miami-Dade, Palm Beach, Hillsborough, Pinellas counties and the Jacksonville area. The credit union has approximately $1.6 billion in assets and just over 200,000 members.
Hopefully any investors who were stupid enough to have deposits for more than $250,000 in either of the institutions managed to play the short squeeze and make up for the losses. Also, they are all likely very convinced that the economy is abound to rebound.
SA Editor's note: An earlier version of this post inaccurately associated First Bank of Idaho with ticker IDFB, which is Idaho First Bank.