Bank Failure Friday

Bank failure Friday was a big one this week with the  FDIC announcing 6 bank failures in Georgia. What's going on in Georgia? A quarter of all bank failures this year happened in Georgia. Only another $807 burned by the FDIC trust fund, they should be broke by early fall and have to get a bailout from the taxpayers. Don't  be fooled by optimistic commentary or the stock market rally, there are big problems with the banks and the economy. The recession has a long way to go in my opinion. -Lou

Friday, July 24, 2009

Six Bank Failures Reported in Georgia

 

Kathryn Glass

FOXBusiness

 

The Federal Deposit Insurance Corporation announced the failure of 6 Georgia banks, with 20 bank branches on Friday, bringing the total number of U.S. bank failures this year to 64.

All six banks were subsidiaries of Macon, Ga.-based Security Bank Corporation, and the banks held a total of $2.8 billion in assets and $2.4 billion in total deposits, as of March 31, 2009.

The FDIC is acting as receiver of the banks and a purchase and assumption agreement has been arranged with Pinehurst, Ga.-based State Bank and Trust Company, which will take over all deposits at Security Bank Corporation subsidiaries. State Bank and Trust Company will share the $1.7 billion in losses on the bank’s assets with the FDIC.

The six banks that have been closed include:
-- Security Bank of Bibb County, Macon, Ga.
-- Security Bank of Houston County, Perry, Ga.
-- Security Bank of Jones County, Gray, Ga.
-- Security Bank of Gwinnett County, Suwanee, Ga.
-- Security Bank of North Metro, Woodstock, Ga.
- Security Bank of North Fulton, Alpharetta, Ga.

The FDIC estimates that the failure of these six banks will cost $807 million. Bank customers should visit the FDIC’s Web site if they have questions or need additional information.

Sixteen bank failures have now been reported in the state of Georgia -- that accounts for one-quarter of all bank failures in the U.S. so far this year.