Big Al45

Smaller Banks Not Immune to Securities Losses After All

A bad investment portfolio is usually not enough to bring down a bank. Most of the failures also made a lot of poorly underwritten loans - particularly AD&C loans.

Guaranty Financial Group: On the Rocks

Well, Guaranty is in bad shape but there are a lot of other worthy closure candidates out there. Georgia alone has 10 functioning banks with a Texas Ratio over 200% In normal times, a Texas ratio over 100% would result in a cease and desist order and put the bank on the fast track to closure

Think that Sheila selects the banks for closure based on the FDIC's ability to dispose of the assets and not the degree of insolvency. There's no hurry to close a bank provided the depositors don't withdraw their deposits and the bank doesn't make more questionable loans

Personally, I'm betting that Corus or Security Bank of Georgia will be the next mult billion dollar bank closure. However, that won't happen for a couple of weeks. The FDIC can't handle more than one large failure a month.