Bank Failure Friday: Late Edition

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.

The FDIC list of troubled banks is now 305 in total.
Two other large banks are "critically under-capitalized" and will likely fail - Corus Bank and Guaranty Financial Group.

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thanks for the update

Some of the news on the 305, Bloomberg has a list of 150 in immediate danger, with 300 up and coming, then we're hearing very bad things on Fannie/Freddie, Ginnie....

So, while the media and the public has moved on, it is starting to look like toxic assets have not.

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