Bank Failure Friday - 5 more, 3 in Florida

Another Friday, another announcement of five more bank closings by the FDIC. This week's winners are:

  1. Bank of Florida - Southeast
  2. Bank of Florida - Southwest
  3. Bank of Florida – Tampa Bay
  4. Sun West Bank - Las Vegas, NV
  5. Granite Community Bank - Granite Bay, CA

Cost to the FDIC: 3 Florida banks $203 million, California bank, $17.3 million and the Las Vegas bank, $96.7 million.

This is the second bank failure in Nevada this year.

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They just go on and on and on.

These bank failures, that is. I keep hoping (naively perhaps) that after so many failures, the weak banks have now failed and the number will slow to a trickle. But unfortunately it seems that the generalized weakness of the banking system as a whole continues more or less unabated, hence the continuting failures in large numbers. Can someone point me to a general analysis of the overall health of the American banking system at this point in time?

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Ray Joiner

FDIC has access to Treasury funds

They are about $20 billion in the hole, just did a quarterly report but the Treasury is funding them. The overall health of small banks, I'm not sure about. I'd say due to the lack of lending to small business it's probably not so great. I'm also not sure how many of these banks held onto their loans and didn't resell them for securitization purposes and this is why they are failing in droves.

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775 Bank Failures Do Not Come Cheap

The $20 Billion is one tranche, they will be back. I am spooked by the M3 drop. I would like to research the actual Primary/Secondary Capital positions of the banks
if anyone has that available.

Capital may be ok, but the banks are just not lending, i.e. keeping everything in Treasures. We need to know.

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Burton Leed

May FDIC fund totals

This puts the total "cost to the Deposit Insurance Fund (DIF)" for May at 0.838 billion. Thankfully much lower than the 9.4 billion from April. Total for the year through May is at 16.115 billion.

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