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Cooperative Bank Of Wilmington Fails

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Regulators closed Wilmington-based Cooperative Bankshares on Friday evening, the second N.C. bank to fail this year.

First Bank, based in Troy, will assume most of Cooperative's deposits. Regulators will work over the weekend to change signs, convert computer systems and other tasks so that Cooperative's 24 branches can reopen Monday as First Bank branches.

First Bank will also purchase most of Cooperative's assets. The FDIC has agreed to share in future losses on most of those assets.

In April, regulators closed another Wilmington bank, Cape Fear Bank, which was the first N.C.-based bank to fail since 1993. Cape Fear was hit hard by its concentration of loans to developers, who have seen their projects falter in the housing downturn. Cape Fear's eight branches reopened under the ownership of Charleston-based First Federal Savings and Loan Association.

Both Wilmington banks were under “cease and desist†orders from regulators when they failed. Those orders require banks to improve their financial footing, review management and other tasks. An Asheville bank is also under a cease and desist order. So is Nuestro Banco in Raleigh, though that bank said in April it was being bought by another community bank.

Also Friday, regulators shut down small banks in Georgia and Kansas, bringing the number of bank failures so far this year to 40. There are about 8,200 banks in the U.S.

The state commissioner of banks, Joe Smith, stressed that N.C.-chartered bank “in general are in good financial condition and are operating in a safe and sound manner, despite the current economic crisis.â€

“The fact that one of our state-chartered banks has acquired the deposits of Cooperative is evidence of that,†he added.

http://www.charlotteobserver.com/business/story/790048.html

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More private deposits fall into government hands via the FDIC.

Scary. When the hell are people going to wake the fvck up?

US regulators close three more banks

US regulators closed three small banks on Friday, bringing the number of bank failures to 40 so far this year as the recession and delinquent loans erode the health of financial institutions.

The largest of the banks closed on Friday was Cooperative Bank of Wilmington, North Carolina with $970m (£587m, €695m) in assets and $774m in deposits, said the Federal Deposit Insurance Corporation.

The failure is expected to cost the FDIC deposit insurance fund an estimated $217m.

First Bank of Troy, North Carolina will purchase all the deposits, except about $57m in brokered deposits. The FDIC said it will pay the brokers directly.

Cooperative Bank’s 24 branches will reopen on Monday as branches of First Bank.

The FDIC also announced the failure of Southern Community Bank of Fayetteville, Georgia, which had $377m in assets and $307m in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $114m.

United Community Bank of Blairsville, Georgia, agreed to assume the insured deposits of Southern Community Bank, whose five branches will reopen on Monday as branches of United Community Bank.

In Kansas, the FDIC said regulators closed First National Bank of Anthony, with $156.9m in assets and $142.5m in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $32.2m.

Bank of Kansas in South Hutchinson, Kansas, agreed to assume the insured deposits of First National Bank of Anthony, whose six branches will reopen on Monday as branches of Bank of Kansas.

Customers can access their money over the weekend by check, teller machine or debit card, the FDIC said.

The pace of bank failures has accelerated in 2009 as the 18-month-old recession continues. There were 25 failures in all of 2008 and just three in 2007.

Seattle-based Washington Mutual became the biggest bank to fail in US history when it was seized in September with $307bn in assets. JPMorgan Chase acquired the assets of Washington Mutual.

The FDIC insures up to $250,000 per account at member institutions.

The agency also has a running tally of problem banks that its examiners closely monitor. At the end of the first quarter, 305 unidentified financial institutions were on that list.

Edited by cashinmattress

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