Banks

Larger Font

Smaller Font

Printer Friendly

U.S. Banks Continue to Fall Like Dominos

If 'green shoots' means fewer banks, then there's definitely such signs of economic springtime in abundance.

According to the Federal Deposit Insurance Corporation's web site, there have were an additional 8 regional bank failures in the month of June, bringing the total for 2009 thus far to 43.

The most recent victim announced by the FDIC on Friday was Mirae Bank, Los Angeles, closed by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Wilshire State Bank, Los Angeles, California, to assume all of the deposits of Mirae Bank.

The five offices of Mirae Bank will reopen on Monday as branches of Wilshire State Bank. Depositors of Mirae Bank will automatically become depositors of Wilshire State Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until Wilshire State Bank can fully integrate the deposit records of Mirae Bank.

Over the weekend, depositors of Mirae Bank were able to access their money by writing checks or using ATM or debit cards. Checks drawn on the bank continue to be processed. Loan customers were advised to continue to make their payments as usual.

As of May 29, 2009, Mirae Bank had total assets of $456 million and total deposits of approximately $362 million. In addition to assuming all of the deposits of the failed bank, Wilshire State Bank agreed to purchase approximately $449 million of assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and Wilshire State Bank entered into a loss-share transaction on approximately $341 million of Mirae's assets. Wilshire State Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

SOURCE: http://www.midasletter.com/news/09062901_US-banks-continue-to-fall-like-dominos.php


**************************************************************

You might also like:
• Fjordland’s Discoveries Attract Major Miners
• Gold Climbs to Records in Pound, Euro as Investors Seek Haven
• Canada's Prospects Outshine U.S.
• Buffett Casts a Wary Eye on Bankers
• U.S. Government Debt Tops $11.46 Trillion in 2009
• Financial System Overhaul Deal Near