It’s already an established fact that every Friday now is failure Friday for the FDIC. This week we have a new record of nine bank failures. The usual reassurances apply: deposits are safe up to the insured FDIC limits, bank depositors can access their money by writing checks or using ATM or debit cards, etc. etc. Here is the FDIC release.
“The FDIC entered into a purchase and assumption agreement with U.S. Bank, NA, of Minneapolis, Minnesota, a wholly-owned subsidiary of U.S. Bancorp, to assume all of the deposits and essentially all of the assets of nine failed banks.
The nine banks involved in today’s transaction are: Bank USA, National Association, Phoenix, Arizona; California National Bank, Los Angeles, California; San Diego National Bank, San Diego, California; Pacific National Bank, San Francisco, California; Park National Bank, Chicago, Illinois; Community Bank of Lemont, Lemont, Illinois; North Houston Bank, Houston, Texas; Madisonville State Bank, Madisonville, Texas; and Citizens National Bank, Teague, Texas.
As of September 30, 2009, the banks had combined assets of $19.4 billion and deposits of $15.4 billion.”
The total cost to FDIC’s Deposit Insurance Fund is expected to be a combined $2.5 billion. The failure of the nine banks brings the nation’s total number this year to 115.