Friday, February 20, 2009

It Would Not Be A Friday Evening Without One More FDIC Bank Failure

Number 14 for the year, and the second one for Oregon in a week, is Silver Falls Bank in Silverton, Oregon. Citizens Bank of Corvallis, Oregon will assume all the deposits of Silver Falls. The bank most recently had total assets of $131 million and total deposits of $116 million. The FDIC cost from this failure will be $50 million. The FDIC has graciously provided a phone number where investors should call before they proceed with the ritualistic Saturday morning run on the bank (1-800-760-3639). If anyone is calling them, could they please get some clarity on how the expanded $100 billion Treasury line of credit is supposed to guarantee the $13.6 trillion of bank assets the FDIC oversees, cause we can't quite figure it out. Sphere: Related Content
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Anonymous said...

I am amazed that a bank with 131 million in assets is going to cost the FDIC 50 million. At that rate Citibank alone will bankrupt the country.