BANK BUST FRIDAY weekend edition: You'll laugh, you'll cry, you'll kiss 4 banks goodbye

[marmar]

Jul 18, 2009, 11:21 a.m. EST

Two California banks join the FDIC closure list
Come on top of closures in Georgia and South Dakota shutdowns

By Russ Britt & John Letzing, MarketWatch


LOS ANGELES (MarketWatch) -- Two Southern California banks have been added to the Federal Deposit Insurance Corp.'s closure list, bringing the total of financial institutions to crumble in the credit crisis' wake this year to 57.

Temecula Valley Bank, in the city of Temecula, and Vineyard Bank, in Rancho Cucamonga, were closed by the FDIC. The institutions had combined total assets of $3.4 billion and deposits of $2.9 billion.

Closure of the two institutions was announced late Friday and came shortly after two other banks were shuttered by the FDIC: Winder, Ga.-based First Piedmont Bank and Sioux Falls, S.D.-based BankFirst.

Vineyard Bank, based near Los Angeles, will be taken over by California Bank & Trust in San Diego. California Bank will purchase all deposits except roughly $134 million in brokered deposits held by Vineyard. FDIC officials said the agency will retain the remaining assets for later disposition.

Temecula Valley Bank will be taken over by First-Citizens Bank and Trust Co. based in Raleigh, N.C. First-Citizens will purchase all deposits, except about $304 million in brokered deposits held by Temecula. ..........(more)

The complete piece is at: http://www.marketwatch.com/story/two-california-banks-added-to-closure-list

[KansDem]

1. "You'll laugh, you'll cry, you'll kiss 4 banks goodbye"

Hardware Wars?

Hardware Wars

Tagline: You'll laugh! You'll cry! You'll kiss three bucks goodbye!

[marmar]

2. EXACTLY......I didn't think anyone would get that reference.....

You win the fluff pop culture award for the day..... :) :toast:

[KansDem]

5. Many years ago I had a video with four of these parodies...

Hardware Wars
Closet Cases of the Nerd Kind
Pork Lips Now

and of course...
Bambi meets Godzilla

Ne'er was there a Saturday night in the KansDem household that this video wasn't watched! :rofl:

[abumbyanyothername]

3. The banking system as a whole is insolvent.

banks owe more than their assets are worth. The main thing that is keeping them even marginally afloat is that there is virtually no way to remove assets from the banking system these days.

I'm not saying that they won't come up with some new accounting device to make things seem all right.

/s/ a former banking system insider.

[InkAddict]

6. OMG, I haven't seen that shorthand (/s/) since the 1970s.

Names of banking exec's on the documents they prepare and/or present are now merely fiduciary worthlessness representing no accountability, reliability, nor culpability; they are certified confirmation YOU should have signed with an X or your dog's footprint you were saving to sell as Art.

/s/former as well -

[Critters2]

4. Happens every Friday. A few weeks ago, the whole Friday list

was made up of small banks in Illinois. That seemed odd. But this is become a weekly ritual. Wonder how it will end.

[FarCenter]

7. Hit of $1.09 Billion to the FDIC's insurance fund

First Piedmont Bank, Winder, Georgia, the cost to the Deposit Insurance Fund (DIF) will be $29 million.

BankFirst, Sioux Falls, South Dakota, the cost to the Deposit Insurance Fund (DIF) will be $91 million.

Vineyard Bank NA, Rancho Cucamonga, California, the cost to the Deposit Insurance Fund (DIF) will be $579 million.

Temecula Valley Bank, Temecula, California, the cost to the Deposit Insurance Fund (DIF) will be $391 million.

I visited Temecula, CA last year. It seemed like a town of many new homes far away from everything else, and with no visible means of support. There was a little bit of tourism, and some not very good wineries, but that was about it. No business other than home building, real estate, and retail strip malls.