I’ll be honest, I was a little surprised that only a single bank was added to the FDIC Failed Bank List. Georgian Bank, of Atlanta, GA failed. From the press release:

As of July 24, 2009, Georgian Bank had total assets of $2 billion and total deposits of approximately $2 billion. In addition to assuming all of the deposits of the failed bank, First Citizens Bank agreed to purchase essentially all of the assets.

…

The FDIC and First Citizens Bank entered into a loss-share transaction on approximately $2 billion of Georgian Bank’s assets. First Citizens Bank 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 $892 million. First Citizens Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Georgian Bank is the 95th FDIC-insured institution to fail in the nation this year, and the nineteenth in Georgia. The last FDIC-insured institution closed in the state was First Coweta, Newnan, on August 21, 2009.

Yay, only an estimated cost of $892 million dollars to protect $2 billion of deposits! In other news, the FDIC may have a problem covering their obligations. It turns out that their guaranteed line of credit from the Treasury may have hit a snag: the US debt ceiling. Fortunately, congress is hard at work raising the amount that the US is allowed to borrow.