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FDIC TGI Failure F... er... T

Tyler Durden's picture


Failure Friday is early today: the first bank shooting green all the way to the grave is John Warner Bank, from Clinton, IL. Likely more to come today.

The FDIC and State Bank of Lincoln entered into a loss-share transaction on approximately $31 million of The John Warner Bank's assets. State Bank of Lincoln 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.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $10 million. State Bank of Lincoln's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. The John Warner Bank is the 46th FDIC-insured institution to fail in the nation this year, and the seventh in Illinois. The last FDIC-insured institution to be closed in the state was Bank of Lincolnwood, Lincolnwood, on June 5, 2009.


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Thu, 07/02/2009 - 16:56 | Link to Comment Anonymous
Thu, 07/02/2009 - 17:00 | Link to Comment phaesed
phaesed's picture

Perfect way to celebrate independence day!

Thu, 07/02/2009 - 17:06 | Link to Comment jswede
jswede's picture

the largest community bank to date is on the brink - $14.4bil Guaranty Bank out of Austin, HQ in Dallas --- this one will be costly

Thu, 07/02/2009 - 17:16 | Link to Comment Anonymous
Thu, 07/02/2009 - 17:13 | Link to Comment Veteran
Veteran's picture

Yo TD,

slightly off subject but whatever happened with that jack off who got caught calling TARP/PPIP a sham and then denied saying it? Seems especially relevant now that return of the son of PPIP might be starting up soon?

Fri, 07/03/2009 - 03:32 | Link to Comment binge-trader (not verified)
Fri, 07/03/2009 - 04:30 | Link to Comment Thaisleeze (not verified)
Sat, 07/04/2009 - 11:56 | Link to Comment Veteran
Veteran's picture

Thanks for the heads up.  I haven't found anything either.  Curious

Thu, 07/02/2009 - 17:43 | Link to Comment economessed
economessed's picture

Hey Chair Bair, what's in your wallet?

Thu, 07/02/2009 - 21:01 | Link to Comment randolfude (not verified)
Thu, 07/02/2009 - 17:46 | Link to Comment Anonymous
Thu, 07/02/2009 - 18:21 | Link to Comment Anonymous
Thu, 07/02/2009 - 20:58 | Link to Comment randolfude (not verified)
Thu, 07/02/2009 - 18:27 | Link to Comment Miles Kendig
Miles Kendig's picture

AAAaannd the hits just keep on rollin'

Thu, 07/02/2009 - 18:55 | Link to Comment My cognitive di...
My cognitive dissonance's picture

Hemorrhaging green shoots.

Thu, 07/02/2009 - 21:09 | Link to Comment crazyjerrygarcialover (not verified)
Fri, 07/03/2009 - 09:31 | Link to Comment crazyjerrygarcialover (not verified)
Thu, 07/02/2009 - 23:10 | Link to Comment jswede
jswede's picture

man these failures seem so concentrated... FL, CA, TX, IL, GA... Im sure I'm missing a few but where is OHIO, NEVADA, where is MICHIGAN? I know FDIC are understaffed and way behind where they need to be, but could it be that in these states there just are not enough strong banks to take over the assets??...

could this be why they are trying to fast track the new bill for P.E. takeovers? (ie the latest is that PE must hold the banks for at least 3 years)...

just thinking out loud but IL is not worse than MI, OH, NV.... yet IL has all these failures that other, nearby local IL banks are taking over... could it be that there just are not enough large enough, strong enough, local banks to take over the failures in OH, MI, NV?

Fri, 07/03/2009 - 09:28 | Link to Comment crazyjerrygarcialover (not verified)
Thu, 07/02/2009 - 23:28 | Link to Comment Anonymous
Thu, 07/02/2009 - 23:30 | Link to Comment Anonymous
Thu, 07/02/2009 - 23:52 | Link to Comment agrotera
agrotera's picture

Can someone please help me with something?

Is it not wrong that all last fall paulson and bernake were telling the public one thing, yet telling tarp recipients something else? All we the people heard was that tarp was to make sure liquidity didnt dry up so lending would flow--but the USBancorp CEO told a lunch crowd in Feb (reported by that treasury told him(and other tarp recipients) that he was to tell the public that the money was for lending, but that he should know that it wasn't for lending, it was to enable them to buy smaller banks so they could do their duty and be a part of the darwinian cleansing necessary at this time. Not a quote, but all the key points. Isn't that backwards? Shouldn't paulson and bernake, if they were truly acting as fiduciaries for our country (and not self-dealing) shouldn't they have, in September, taken the time that they used for lobbying for TARP to level with the country and ask for the powers to unwind the 2 remaining investment banks and apparently failed bank (no names but we all know the single digit name i am talking about)so that the cleaner nosed entities could have purchased the pieces of these entities at a discount and benefited for keeping clean, instead of given the golden last dollar of the US coffers to ensure that these monster machines that enrich the federal reserve could keep standing?

i have made a broken record of the twincities article, but it just hasn't penetrated the vampire squid hold that all these lies seem to have on our public psyche. I just read last night someone who said that getting rid of a bad statistic is as hard as killing a vampire--great that M Taibbi used the vampire theme--so perfect.

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