… The FDIC closes it on a Thursday. LibertyPointe Bank of New York, NY just failed. The bank had $209.5 million in total deposits and will have an estimated hit to the Deposit Insurance Fund of $24.8 million. The FDIC entered into a loss-share agreement with Valley National Bank on $181.5 million of LibertyPointe Bank’s assets.
This is the first bank since WaMu to be closed on a non-Friday. This bank isn’t nearly as large, and the estimated losses aren’t particularly scary. What gives? Is the hammer going to drop tomorrow (the traditional Bank Failure Friday)? Incidentally, not only do we have fairly small estimated losses, the FDIC is going to have this bank turned around and open for business tomorrow. That’s an extremely quick turnaround for a 3 branch, $200 million failure. I wonder if they screen for performance enhancing drugs.
Happy early Friday, everyone.
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