Five more banks failed on Friday, which isn't really new.
Union Bank, National Association of Gilbert, Arizona
Community Bank of Arizona of Phoenix, Arizona
Community Bank of Nevada of Las Vegas, Nevada
Dwelling House Savings and Loan Association of Pittsburgh, Pennsylvania
These are all small to medium sized banks and nothing to worry too much about.
However, there was one bank that is an exception to this rule - Colonial Bank of Montgomery, Alabama.
As of June 30, 2009, Colonial Bank had total assets of $25 billion and total deposits of approximately $20 billion...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $2.8 billion. ... Colonial Bank is the 74th FDIC-insured institution to fail in the nation this year, and the first in Alabama.
Colonial Bank is notable for several reasons:
1) Colonial Bank, with 346 branches and $25 Billion in assets, is the largest bank to fail this year. In fact, it is 100 times the size of the average bank failure of 2009.
It's expected to cost the FDIC between $5 Billion and $7 Billion to clean up the mess.
2) Colonial Bank has had significant legal troubles and federal investigations of criminal wrongdoing.