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Shorebank Of Chicago, 7 Others Closed As 2010 Failures Climb To 118!

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anyone keeping score of US Banks failure?

let me refresh your memory,

just in 2010 (thats Jan todate) its massive 118 closed down yep.

and since the start of crisis, 2007 the figure stand at 345!!! gone forever!

So in near future FDIC is going to own almost all US banks? end of an era!

end of banking system as we know it! &

there are deluded people out there who thinks there is nothing wrong with the empire.

ShoreBank of Chicago, Seven Others Shuttered as 2010 Failures Climb to 118

By Dakin Campbell and James Sterngold - Aug 21, 2010 3:00 AM GMT+0100

ShoreBank Corp., the Chicago lender operating under a Federal Deposit Insurance Corp. cease-and- desist order for 13 months, and seven other banks were shut by regulators as 2010 bank failures climbed to 118.

ShoreBank’s 15 branches, including those in Chicago, Cleveland and Detroit, will open as Urban Partnership Bank, according to statements from the FDIC.

http://www.bloomberg.com/news/2010-08-21/shorebank-of-chicago-seven-others-shuttered-as-2010-failures-climb-to-118.html

good site if you want to keep updated with US & international incl. UK banks closures

Since early 2007, 345

banks have "imploded*"

•General Implodes

•FDIC Failed Banks

http://bankimplode.com/

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Scathing comment on zerohedge about this.

After a lengthy attempt to bail out his pet bank, ShoreBank Chicago, Illinois, which included several alleged armtwisting episodes by the administration, the president has finally let the bank die (with its assets valued at about 50% of face). Yet instead of going to hell, it was immediately resurrected with a bevy of new owners, among them Goldman, Morgan Stanley, and BofA, all of whom received nearly $400 million in taxpayer money for their "generosity" to keep the bank zombified even in the afterlife.

..............................

By keeping ShoreBank artificially alive for far longer than it deserved, the assets amortized far more than they would have had it been taken into receivership by a non-conflicted bank, and thus the final cost to taxpayers would have been far less.

As it stands, Goldman and 11 other banks are receiving a multimillion dollar gift to conduct a portfolio liquidation run-off of ShoreBank's assets, while merely making sure existing deposits are serviced. At least we now know just how truly angry at Wall Street Obama is.

The funniest bit: this is how efficient the auction process was (from the press release):

FDIC received only one bid, which included an asset discount of $146 million and a 0.5 percent deposit premium. This saved the FDIC’s insurance fund $250 million to $334 million over liquidation.

This also padded the top line of the abovementioned banks by $368 million off the bat, over and above whatever they make as they collect the proceeds from the portfolio run off.

In other words, Wall Street's core banks could have come up with any bid they wanted, and the FDIC would have had no choice but to fund the difference, because the alternative would be, gasp, so much scarier. Hm, where have we heard this before.

http://www.zerohedge.com/article/failure-obamas-pet-shorebank-costs-taxpayers-368-million-which-immediately-goes-goldman-sach

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Just a thought, but IF banks were properly declaring their asset values, maybe a closure would be 100% orderly as the FDIC took pre-emptive action on a failing bank.

FDIC shouldnt have to pay out a penny...EVER.

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By my reckoning, there's only about $7-10 Bn left in the Deposit Insurance Fund (FDIC), that after they raised three years' premiums in advance last year.

The DIF insures $13,000 Bn of deposits. Hardly a big margin, eh?

(DIF: where i keep score )

well done

so this ain't going to last for long.

long queues at tremaining banks soon!

or people are asleep,

as illusion govt will save them still holding!

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four more to add

total now stand todate 349!!!

Sonoma Valley Bank Sonoma CA 27259 August 20, 2010 August 24, 2010

Los Padres Bank Solvang CA 32165 August 20, 2010 August 24, 2010

Butte Community Bank Chico CA 33219 August 20, 2010 August 25, 2010

Pacific State Bank Stockton CA 27090 August 20, 2010 August 24, 2010

http://www.fdic.gov/bank/individual/failed/banklist.html

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And the big global banks are gaining new customers in the process.

But one day it will all end in tears (as illustrated below):

h2_17.3.859.jpg

Edited by Pole

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