I was drunk Friday (wine-tasting followed by drinking downtown). I forgot to check the FDIC failed bank list. Yesterday was Valentine’s day, which was mostly mimosas and video games (I bought my girlfriend Da Blob and Boom Blox for the Wii). The day ended with an event at a winery. That’s my excuse. So, here’s the Sunday edition of Bank Failure Friday:
Pinnacle Bank of Oregon, Beaverton, OR — an estimated cost of $12.1 million to the FDIC fund.
Corn Belt Bank and Trust Company, Pittsfield, IL — $100 million
Riverside Bank of the Gulf Coast, Cape Coral, FL — $201.5 million
Sherman County Bank, Loup City, NE — $28.0 million
These banks had deposits of $64 million, $234.4 million, $424 million, and $85.1 million. Why are the losses to the fund so high? Riverside is covering almost 50% through FDIC insurance. That’s crazy. Has the FDIC been asleep at the switch? Maybe depository institutions should be marking things to market. After all, if they are insolvent, the assets have to be sold at whatever market price the FDIC can get.
