Wednesday, October 14, 2009
Important Milestone in Green Shoots Recovery
So far this year, the Federal Deposit Insurance Corporation has seized control of 98 banks, setting in motion an increasingly well-practised operation in which regulators typically descend on failing banks on a Friday evening, allowing time for regulators to shore up deposits before the financial industry re-opens on a Monday morning. The most recent banks to fail were Warren Bank in Michigan, Jennings State Bank in Minnesota and Southern Colorado National Bank, which shut earlier this month. In all three cases, the FDIC found alternative banks to take responsibility for deposits.