Cost of 14 Failed Banks in 2009

by Manshu on February 23, 2009

in Articles

So far in 2009 – 14 banks have failed , and have been taken over by the FDIC. These banks are much smaller than Citi or Bank of America, and the latest one to fail  – Silver Falls Bank, Silverton, OR – had assets worth $131.4 million dollars.

The FDIC facilitated a purchase agreement with – Citizens Bank – who will take over the deposits of Silver Falls Bank and the depositors of Silver Falls will now bank with Citizens Bank.

The combined assets of all these failed banks amount to $6.87 billion dollars and the total losses because of these failures amount to $1.65 billion dollars.

So that means on an average, when a bank failed in 2009, the taxpayer incurred a loss of about 24% of the assets held with the bank.

Here is a list of all the 14 banks that failed in 2009 with their Assets and Cost to Federal Insurance Deposit.

S. No. Bank Name Assets Cost
1 Silver Falls Bank, Oregon $131.4 million $50 million
2 Pinnacle Bank, Beavorton, Oregon $73 million $12.1 million
3 Corn Belt Bank and Trust Company, Pittsfield, Illinois $271.8 million $100 million
4 Riverside Bank of the Gulf Coast $539 million $201.5 million
5 Sherman County Bank, Loup City, Nebraska $129.8 million $28 million
6 County Bank, Merced, California $1.7 billion $135 million
7 Alliance Bank, Culver City, California $1.14 billion $206 million
8 FirstBank Financial Services, McDonough, Georgia $337 million $111 million
9 Ocala National Bank, Ocala, Florida $223.5 million $99.6 million
10 Suburban Federal Savings Bank, Crofton, Maryland $360 million $126 million
11 MagnetBank, Salt Lake City, Utah $292.9 million $119.4 million
12 1st Centennial Bank, Redlands, California, $803.3 million $227 million
13 Bank of Clark County, Vancouver, Washington $446.5 million $145 million
14 National Bank of Commerce, Berkeley, Illinois $430.9 million $97.1 million

It will be interesting to see what the estimated cost of solving the banking crisis eventually comes out at, but I hope it is lesser than 24% than the total assets of the major big banks in the country. But looking at these numbers I think all of us should brace ourselves to see a price tag that stretches to a – T, not a – B.

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