04.08.2011
04.14.2011 update
28 Bank Failures in 2011
original article written by Net Advisor™
Since our last report, there have been 17 more bank failures in the U.S. That includes 12 failed banks in February, which is 11 more than January, three bank failures in March and two in April thus far. All of the banks we sold to other financial institutions under the FDIC’s loss-share agreement.
In July 2010 President Obama declared that there would be no more banks bailouts:
“No more taxpayer-funded bailouts.”
— Source: White House.gov (PDF), July 21, 2010
Well, this sounded really good in a nationally televised press conference, however the truth of the matter is that the Obama Administration ended up bailing out 157 failed banks in 2010 alone, and as we reported here today, another 28 in 2011 and counting. The Obama Administration also has to help keep the bailout agency, the FDIC afloat.
The FDIC believes that the projected cost of bank bailouts from 2011 to 2015 is now in the range of about $21 Billion, about $3 Billion less than previously foretasted. Al thought its debt situation has improved, the FDIC itself is still operating in the red with $7.4 Billion of debt as of the year end 2010 (Source: Market Watch).
It’s a little ironic that government approved of the big 1980’s to 2000’s bank mergers, where some later became to “big to fail.” The irony is that the FDIC is taking these failing banks and effectively allowing them to merge with other banks, making the existing banks – bigger. Granted, the acquiring banks are not the size of Bank of America, JP Morgan Chase, Citigroup or Wells Fargo by any stretch, but those banks were all once much smaller and all grew in large part by years of acquiring other banks.
The following chart depicts the failed institutions from February 1 to April 8, 2011:
Bank Name |
City |
State |
Cert# |
Closing Date |
2011 Fail# |
| Nevada Commerce Bank | Las Vegas | NV | 35418 | April 8, 2011 | #28 |
| Western Springs National Bank and Trust | Western Springs | IL | 10086 | April 8, 2011 | #27 |
| The Bank of Commerce | Wood Dale | IL | 34292 | Mar. 25, 2011 | #26 |
| Legacy Bank | Milwaukee | WI | 34818 | Mar. 11, 2011 | #25 |
| First National Bank of Davis | Davis | OK | 4077 | Mar. 11, 2011 | #24 |
| Valley Community Bank | St. Charles | IL | 34187 | Feb. 18, 2011 | #23 |
| San Luis Trust Bank, FSB | San Luis Obispo | CA | 34783 | Feb. 18, 2011 | #22 |
| Charter Oak Bank | Napa | CA | 57855 | Feb. 18, 2011 | #21 |
| Citizens Bank of Effingham | Springfield | GA | 34601 | Feb. 18, 2011 | #20 |
| Habersham Bank | Clarkesville | GA | 151 | Feb. 18, 2011 | #19 |
| Canyon National Bank | Palm Springs | CA | 34692 | Feb. 11, 2011 | #18 |
| Badger State Bank | Cassville | WI | 13272 | Feb. 11, 2011 | #17 |
| Peoples State Bank | Hamtramck | MI | 14939 | Feb. 11, 2011 | #16 |
| Sunshine State Community Bank | Port Orange | FL | 35478 | Feb. 11, 2011 | #15 |
| Community First Bank Chicago | Chicago | IL | 57948 | Feb. 4, 2011 | #14 |
| North Georgia Bank | Watkinsville | GA | 35242 | Feb. 4, 2011 | #13 |
| American Trust Bank | Roswell | GA | 57432 | Feb. 4, 2011 | #12 |
To view a great interactive graphic of bank implosions, check out this Wall Street Journal link here.
See the other bank failures and history on our Bank Failure Tracker
(Chart Data Source: FDIC)
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