04-16-10: Eight banks seized

Weiss

Regulators Seize Eight Banks

WASHINGTON (Reuters) - U.S. regulators on Friday seized eight banks with assets totaling more than $6 billion, raising the tally this year to 51 failed banks and adding to the carnage of small institutions that is expected to peak this year.

* City Bank of Lynnwood, Washington, with assets of about $1.13 billion

* Tamalpais Bank of San Rafael, California, with assets of $628.9 million

* First Federal Bank of North Florida of Palatka, Florida, with assets of $393.9 million

* AmericanFirst Bank, of Clermont, Florida, with assets of $90.5 million

* Riverside National Bank of Florida, with assets of $3.42 billion

* Butler Bank of Lowell, Massachusetts, with assets of $268 million

* Lakeside Community Bank of Sterling Heights, Michigan, with assets of $53 million

* Innovative Bank of Oakland, California, with assets of $284 million.

derryb

Canada's second largest lender buys three of them in Florida

COINB0Y

Whew! Back to normal!

roadrunner

I think the FDIC was laying low on the bank failures over the past few weeks in order to better support the recovery in the economy and markets. Now that Goldman has taken front page news and tanked the market somewhat, FDIC now has to make up lost ground.

A bigger question might be is were those 8 banks really all that much "better" a few weeks ago that they shouldn't have been taken then? Or is it that the FDIC only has enough people (and credit) to handle about 4 closures per wk average? The worst of these 8 banks overvalued it's assets by 91% per the FDIC. So last month they might have been "only" 88% overvalued and good to go for another month? Ahh, the beauty of FASB marked to model accounting.

roadrunner