Friday, July 25, 2008

More Bank Failures. Well... its Friday!

The 28 branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed Friday by federal regulators.

Oops. Nothing to See here, move along.

But what struck me was this quote:
"It's very important that Arizonans know that their deposits are secure," said Felecia Rotellini, superintendent of Arizona Department of Financial Institutions. "They are well-managed and the 1st National Bank of Arizona issues should not cause any panic in Arizona."

Whiskey Tango Foxtrot?!? Ok, its one thing for us bloggers to speculate on the next bank failures, but its another for a government official to express worry in such a fashion! I'm sure the Arizona Department of Financial Institutions is always on the look out for financial panic (bank runs). But to mumble that off to a reporter? The FDIC should stop wasting time looking at blogs and instead look into the state agencies... and when they get around to it, the reserves of their member banks.
That is seven failed banks in 2008. Its funny, on Calculated risk there are a few Trolls making fun of how we bloggers look for Friday bank failures. Well... Two banks failed today.

Note: This is no Indymac. That failure was a big one. 28 branches... yawn. Although only 70% of deposits were insured (the rest, I assume, were above the $100k limits.

Comment on Indymac: For those with insured accounts (joint accounts) over $100k, its almost random who is getting paid and who is having to wait. I know of someone having to go back for a third time to try and get out their excess funds.

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