FDIC Closes Three More Banks

This brings the 2009 total to 20 banks down and counting. The latest three are:

• FirstCity Bank of Stockbridge, GA, had total assets of $297 million and total deposits of $278 million. At the time of closing, the bank had approximately $778,000 in deposits that exceeded the insurance limits. In English this means tomorrow some people will realize they are $778,000 poorer.
  
• Colorado National Bank, Colorado Springs, CO, had total assets of $123.5 million and total deposits of $82.7 million. The FDIC will share 80/20 percent in the losses with Herring Bank (who assumes Colorado Natl's deposits) on approximately $62 million in assets covered under the agreement.
• TeemBank, National Association, Paola, KS, had total assets of $669.8 million and total deposits of $492.8 million. The FDIC will share 80/20 percent in the losses with assuming bank Great Southern Bank on approximately $450 million in assets covered under the agreement.

And thanks to vigilant readers who pointed out this new twist: the U.S. placed two credit unions under conservatorship: U.S. Central Federal Credit Union (Lenexa, KS) with $34 billion in assets and Western Corporate Federal Credit Union (San Dimas, CA) with $23 billion in assets...

The two corporate credit unions were placed into conservatorship to protect retail credit union deposits and the interest of the National Credit Union Share Insurance Fund (NCUSIF), as well as to remove any impediments to the Agency’s ability to take appropriate mitigating actions that may be necessary. Service continues uninterrupted at both U.S. Central Corporate Federal Credit Union and WesCorp, and members are free to make deposits and access funds.

The Federal Credit Union Act authorizes the NCUA Board to appoint itself conservator when necessary to conserve the assets of a federally insured credit union, preserve member assets and protect the NCUSIF.

$57 billion in assets? This is more than all FDIC-seized bank assets in 2009. Has the FDIC been merely attempting to distract from the real troubles at the National Credit Union Administration?