Along with four other banks that failed over the weekend as well, the FDIC has closed 77 banks this year. One more and we’ve tripled last year’s count.
(AP Photo/Michael Probst)
Like WaMu, the FDIC brokered most of Colonial’s burden onto another bank’s balance sheet. BB&T picked up the lion’s share. And just like the WaMu/JP Morgan deal, the FDIC greased the gears by including some kind of backstop provision. In this case, BB&T and the FDIC (read: your tax revenues) will enter a loss sharing agreement on $15 billion in shaky Colonial assets.
Colonial‚Äôs failure took a $2.8 billion chunk out of the FDIC‚Äôs deposit insurance fund. With just $13 billion left — at best — the fund is at its lowest level since 1993. Along with four other banks that failed over the weekend as well, the FDIC has closed 77 banks this year. One more and we‚Äôve tripled last year‚Äôs count.
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Yep and it ain't the last one either.
HOlD on just a minute here….I've heard on the news now for the past two weeks we are out of the recession and things are good. What's all this about bank closings? Have you not turned on your TV to get the latest news?
Sad isn't it, we can be led around so easily. Made to believe the impossible, inject hope while on a sinking ship. Folks, this is the best magic show on the strip of America, Vegas can't hold a candle to the slight of hand pro's in Washington.
And the beat goes on……..
This financial mess we're in looks like its going to be here awhile.