Friday Bank Failure #37 19 comments
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Bank failure # 37 for the year was Bank of Lincolnwood, Lincolnwood, Illinois. Republic Bank of Chicago, Oak Brook, Illinois will assume all the deposits.
As of May 26, 2009, Bank of Lincolnwood had total assets of approximately $214 million and total deposits of $202 million. Republic Bank of Chicago agreed to purchase approximately $162 million in assets. The FDIC will retain the remaining assets for later disposition.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $83 million. Republic Bank of Chicago's acquisition of all the deposits was the "least costly" resolution for the DIF compared to alternatives. Bank of Lincolnwood is the 37th FDIC-insured institution to fail in the nation this year and the sixth in Illinois. The last bank to fail in the state was Citizens National Bank, Macomb, on May 22, 2009.
Does anyone even care about this data anymore? There obviously isn't one bank in the US which, on a long enough timeline, won't fail.
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www.cbsnews.com/video/...
slip sliding away...
www.youtube.com/watch?...
unless of course you're one of the wall street insiders that know which way things will go.
I do.
"There obviously isn't one bank in the US which, on a long enough timeline, won't fail."
Obviously? Not one? Tyler, it's a little early in the game to start drowning in your own hyperbole.
Once upon a time, banks were expected to survive by their own care and wits; I suspect more than a few of the smaller ones are still run that way. If you were to reference Dr. Weiss's methodology, I suspect you could pick out Dozens that can survive this mess, even on the longest time line. Crises tend to End, you know. And with Thousands of banks, SOMEone will get it right.
I believe I have a lot of my money in two of them.
On Jun 06 06:00 PM ebschor wrote:
> 37 bank failures is nothing compared to the number of failures during
> the S&L problems of yesteryear. I think we got out of this recession
> relatively unscathed given the fact only 37 banks (most of them small
> regional banks) failed.
On Jun 06 06:00 PM ebschor wrote:
> 37 bank failures is nothing compared to the number of failures during
> the S&L problems of yesteryear. I think we got out of this recession
> relatively unscathed given the fact only 37 banks (most of them small
> regional banks) failed.
========
The time to really worry is when the FDIC STOPs seizing banks!
(Because that's when the FDIC either can't absorb the cost, or there are no banks able or willing to perform a takeover.)
Khazars: the rest of the story.
On Jun 06 06:00 PM ebschor wrote:
> 37 bank failures is nothing compared to the number of failures during
> the S&L problems of yesteryear. I think we got out of this recession
> relatively unscathed given the fact only 37 banks (most of them small
> regional banks) failed.
Yes, another bank failed. There will 100s more before this is over. Although fatally wounded, many banks will limp along, only failing long after the acute crisis is over. These failures tell us nothing about the future (or even the present), only about the past. They also wont help me, you, or anybody else make money in this market. That trade is past.
"There obviously isn't one bank in the US which, on a long enough timeline, won't fail." You concluded that after 37 failures? Hahaha.
Look at your dollar. In reality you should see ashes and fumes coming from it as it's worth burns from the Federal Reserve and Treasuries purposeful devaluation of it. Now look at GDP (which is shrinking) and bank assets. The pumping of money into the banks results in one thing, the banks owning a larger and larger portion of US assets while individuals own a smaller and smaller percentage. Now look at GDP in respects to government which is rising over 10%. At what point do you call ourselves a socialist country. When GDP is 20% government and banks own 50% of all assets.
At this rate I bet your children will see such an America. When the Fed and Treasury only pump money into banks and financial institutions in a crises the inevitable result is that eventually the banks will own more and more while you own less and less. And in so doing the worth of money will decline relative to the increase in dollars that they pump into banks. Furthermore, the more the Federal reserve and Treasury are the primary supporters of the banking system the more reliant banks and financial institutions become to them and gear their business towards appeasing them more than focusing on the market.
This is the mentality that ruined Freddie Mac and Fannie Mae and is still getting them to make disasterously low rate loans to some unqualified people even today. Because they need Fed backing more than they need to be profitable. Likewise why the big banks bought out ailing banks was partially to remain too big to fail and to appease the Treasury who was dolingout free money. As long as the motivation of banks is not 100% in their financial interest we are making a mockery of capitalism and ruining our economy and our financial health. We need to stop this now, no matter what the pain it causes.
The US can't afford to have such a monetary system so devoid of real economic fundamentals. It also can't afford to continue to marginalize the real weath of individuals in favor of bankrupt financial institutions.
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All people have is numbers on a spreadsheet in a database.
The benefit of credit and debit cards and electronic transactions is that you don't have to produce a physical manifestation of money. It's why we got off the gold standard. What happens when you don't have to physically possess of show something? Fantasy. The fantasy that money in your account is actually there or backed up by something.
Just wait until people go to the ATM or get on their account and are told "No account activity allowed at this time." Then "Please continue to make purchases using your debit or credit card."
People would be wise to spend those numbers on a spreadsheet on physical assets they can hold, live in, eat and drink; because the numbers in the database may become meaningless overnight.