(Belated) Failure Friday: 2 Banks in Georgia and Illinois Are Closed
By Daniel Gross
One of the big themes of the economy over the last year and a half has been a decline in both the rate and volume of financial failure. Mortgage and credit card delinquencies and corporate and personal bankruptcies have all been trending down. So, too, have bank failures. In fact, our once-weekly Failure Friday feature, which charts the Federal Deposit Insurance Corporation's Friday-evening takeovers of failed banks, may have to be downgraded to Failure Every-Other-Friday. (Here's the complete failed bank list.)
In the past two weeks, two banks have failed.
On March 2, Global Commerce Bank, a three-branch bank based in Doraville, Georgia, with $144 million in assets, failed and was taken over by Metro City Bank.
On March 9, New City Bank, a Chicago-based institutions with $71.2 million in assets, was shuttered by the Illinois Department of Financial and Professional Regulation. The bank was so far gone that no acquirer could be found for its assets, so the FDIC will make pay outs to insured depositors and ac as receiver.
So in the first ten weeks of 2012, 13 banks with a combined $3.83 billion in assets have failed. That's relatively by historical standards. But compared to last year, both the number and size of the typical failed bank have fallen. In the first ten weeks of 2011, 25 banks with a combined $9.88 billion in assets failed.
Daniel Gross is economics editor at Yahoo! Finance
Follow him on Twitter @grossdm; email him at grossdaniel11@yahoo.co
