Friday Night Bank Seizures
Despite some decent profit reportings for the first quarter for some larger financial institutions, there are still a lot of small banks that are facing hardships and are being seized, sometimes in the middle of the night, by the FDIC. Below are just two of the latest:
Bank regulators closed American Sterling Bank bank on Friday, the 24th U.S. bank to fail this year as the struggling economy and falling home prices take their toll on financial institutions.
The Federal Deposit Insurance Corp said Missouri-based American Sterling had $181 million in assets and $171.9 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $42 million.
The Missouri offices of American Sterling will reopen on Saturday, and the offices in California and Arizona will reopen on Monday as branches of Metcalf Bank, which is assuming all the deposits of American Sterling.
Customers can access their money over the weekend by check, teller machine or debit card, the FDIC said.
Bank regulators closed Great Basin Bank of Nevada on Friday, the 25th U.S. bank to fail this year as the struggling economy and falling home prices take their toll on financial institutions.
The Federal Deposit Insurance Corp said Great Basin had assets of $270.9 million and $221.4 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $42 million.
Nevada State Bank agreed to assume the insured deposits of Great Basin, whose five branches will reopen on Monday as branches of Nevada State Bank.
For a more in depth look at aspects of the FDIC see Biggest Bank Failure of 2009.
