7 Banks Fail – FDIC Receiver of All of them

This week we had 7 bank closures, you heard that right, 7 bank closures. To make matters worse ALL 7 bank failures named the FDIC as the receiver. Here’s a list of all the banks:

Founders Bank, Worth, IL
Millennium State Bank of Texas, Dallas, TX
The First National Bank of Danville, Danville, IL
The Elizabeth State Bank, Elizabeth, IL
Rock River Bank, Oregon, IL
The First State Bank of Winchester, Winchester, IL
The John Warner Bank, Clinton, IL

The above 7 bank failures brings our 2009 Total to 52, which is more then DOUBLE the 25 we had in all of 2008. The total cost to the FDIC of the 7 closures is $314.3 Million, and I can guarantee that the FDIC doesn’t have much money left hence announcing today they are mulling over changing the sales rules.

Things are looking bleak, and people have already called the recession “over”. Obviously again these continued closures show that MANY U.S. Banks are insolvent.

Good thing it’s a 3 day weekend and people will likely forget about the news come monday. This is a good sign for Mortgage Rates though (a collapse in the market would bring down Mortgage rates pretty good)

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