FDIC Closes Seven Banks, 2010 Total Climbs To 37 MARCY GORDON | 03/19/10 AP

Reader, doing the simple math the FDIC is ahead of last year's rate already. Given that the economy is very like to take a sharp turn for the worse this fall and that there are many banks effectively waiting their turn at FDIC staff scrutiny, the number is likely to reach 200, in my opinion. The Wall Street zombie banks are another category entirely, and probably won't survive even having the losses that they have parked off of their accounting statements come home to roost. The next 8 months is likely to be very bumpy. At some point China will make its substantial response to being badgered and bullied by the strutting former imperialists, and then the damn will break. China will continue to play to its interests at every point, including measuring its responses. This is what an empire in collapse looks like. If you understand the tactics of Go, as in the game is won one piece at a time, until it is just too late and there is no room for a defense or to establish a breathing/life space. That point is nearly here. Pay-Backs are hell, it is too bad that we can't export our criminal class. Admin

WASHINGTON — Regulators on Friday shut down seven banks in five states,
bringing to 37 the number of bank failures in the U.S. so far this year.

The closings follow the 140 that succumbed in 2009 to mounting loan
defaults and the recession.

The Federal Deposit Insurance Corp. took over First Lowndes Bank, in
Fort Deposit, Ala.; Appalachian Community Bank in Ellijay, Ga.; Bank of
Hiawassee, in Hiawassee, Ga.; and Century Security Bank in Duluth, Ga.

The agency also closed down State Bank of Aurora, in Aurora, Minn.;
Advanta Bank Corp., based in Draper, Utah; and American National Bank of
Parma, Ohio.

The FDIC was unable to find a buyer for Advanta Bank, which had $1.6
billion in assets and $1.5 billion in deposits. The regulatory agency
approved the payout of the bank's insured deposits and it said checks to
depositors for their insured funds will be mailed on Monday.

The failure of Advanta Bank is expected to cost the federal deposit
insurance fund $635.6 million.

For the other banks:

_ First Citizens Bank of Luverne, Ala., agreed to assume the deposits
and assets of First Lowndes Bank. First Lowndes had $137.2 million in
assets and $131.1 million in deposits. The FDIC expects that the cost to
its insurance fund will be $38.3 million.

_ Community & Southern Bank of Carrollton, Ga., agreed to assume the
deposits and assets of Appalachian Community Bank. The bank had $1
billion in assets and about $917.6 million in deposits. The cost to the
insurance fund is expected to be $419.3 million.
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_ Citizens South Bank of Gastonia, N.C., will assume the deposits and
assets of Bank of Hiawassee. Bank of Hiawassee had about $377.8 million
in assets and $339.6 million in deposits. The failure is expected to
cost the insurance fund $137.7 million.

_ Bank of Upson, based in Thomaston, Ga., agreed to assume the assets
and deposits of Century Security Bank, which had $96.5 million in assets
and $94 million in deposits. It is expected to cost the insurance fund
$29.9 million.

_ Northern State Bank in Ashland, Wisc., agreed to assume the deposits
and assets of State Bank of Aurora. The bank had about $28.2 million in
assets and $27.8 million in deposits. The FDIC expects the move will
cost the insurance fund $4.2 million.

_ National Bank and Trust Co., based in Wilmington, Ohio, agreed to
assume the assets and deposits of American National Bank, which had
$70.3 million in assets and $66.8 million in deposits. The cost to the
insurance fund is expected to total $17.1 million.

The pace of bank seizures this year is likely to accelerate in coming
months, regulators have said, as losses mount on loans made for
commercial property and development.

The bank failures – the 140 last year was the highest annual tally since
the height of the savings and loan crisis in 1992 – have sapped billions
of dollars out of the deposit insurance fund. It fell into the red last
year, hitting a $20.9 billion deficit as of Dec. 31.

Depositors' money – insured up to $250,000 per account – is not at risk,
with the FDIC backed by the government. Apart from the fund, the FDIC
has about $66 billion in cash and securities available in reserve to
cover losses at failed banks.

Banks, meanwhile, have tightened their lending standards. U.S. bank
lending last year posted its steepest drop since World War II, with the
volume of loans falling $587.3 billion, or 7.5 percent, from 2008, the
FDIC reported recently.

New Senate legislation was unveiled this week that is a blueprint for
the biggest overhaul of financial regulations since the 1930s, giving
the government unprecedented powers to split up large complex firms if
they pose a threat to the nation's financial system. It would also
create an independent consumer watchdog.

The bill crafted by Sen. Banking Committee Chairman Christopher Dodd,
D-Conn., would force big, complex financial firms to pay insurance
premiums in advance for a $50 billion fund to cover possible failures in
their ranks. The fees levied up front would give the FDIC an immediate
source of funds to resolve big failed institutions, so that taxpayer
money wouldn't be used.

The costs of resolving smaller banks that fail would continue to be
covered by the FDIC.

The FDIC expects the cost of resolving failed banks to grow to about
$100 billion over the next four years.

___

AP Business Writer Tim Paradis in New York contributed to this report."

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