Third largest bank failure of 2009 announced

Trinity

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Third largest bank failure of 2009 announced

Texas-based Guaranty Bank is bought by Spanish bank. Regulators also seize institutions in Alabama and Georgia, bringing this year's tally to 81.


NEW YORK (CNNMoney.com) -- Guaranty Bank was closed by federal regulators Friday in the third largest bank failure this year bringing the total number of failures to 81 in 2009

/The estimated cost of Guaranty's failure to the FDIC is $3 billion.
BBVA (BBV) emerged as the winning bidder for Guaranty's assets, beating out potential buyers including a private equity group led by investor Gerald Ford.

/The purchase marks the first time an overseas-based bank has bought a failed U.S. bank this year. However, the Bilbao-based bank made a series of acquisitions in Texas earlier this decade and already operates the fourth-biggest banking chain in the state by deposits.

/Over the next five years, the agency expects roughly $70 billion in losses due to the failure of insured institutions

Now are Foreign Banks going to need to bail out the FDIC?

F.D.I.C. Seeks to Attract More Buyers of Banks
For the F.D.I.C., led by Sheila C. Bair, it is critically important to keep the insurance fund full because confidence in the banking system depends in part on depositors knowing they will get their money back. But the fund, which is also used to cover losses at insolvent banks, has fallen to just $13 billion at the end of March, the latest month for which figures are available, down from $52.8 billon a year ago, as the number of bank failures accelerates. Because many of the troubled banks are small and their losses relatively large, few buyers are snapping them up. Even worse, buyers are reluctant to pick up illiquid assets, like troubled commercial real estate and construction loans that may continue to hemorrhage losses.

/Analysts are increasingly concerned the fund could be wiped out if more bank failures drained the money the agency has set aside to cover them. That could require the F.D.I.C. to tap a multibillion-dollar lifeline from taxpayers, through an emergency borrowing program run by the Treasury Department, to finance loan sales and other short-term obligations.

/If the F.D.I.C. ever needed to tap taxpayer money, the industry would eventually pay it back. Even so, that could unleash a new set of worries. Officials fear that a raft of troubling headlines about a taxpayer rescue might bring additional scrutiny from lawmakers, or in the worst case, create a run on banks by anxious depositors.
 
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deleted15807

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Aren't you going to blame you-know-who?

Well clearly that has to be the next step. I wonder if she/it/he is paid by the number of Obama bashing threads it starts or Faux News rah rah rah threads it starts or the RNC propaganda it posts. But the truly classic one remains : Gov. Sarah Palin's Speech was Epic that one left no room for doubt indeed we had no Hillarite as proclaimed. It was all a sham.
 

B_VinylBoy

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Well clearly that has to be the next step. I wonder if she/it/he is paid by the number of Obama bashing threads it starts or Faux News rah rah rah threads it starts or the RNC propaganda it posts. But the truly classic one remains : Gov. Sarah Palin's Speech was Epic that one left no room for doubt indeed we had no Hillarite as proclaimed. It was all a sham.

Even Dave Chapelle & Aaron McGrudder TOGETHER couldn't write an opening post in a thread any funnier. "Keep on attacking her... you'll only make her stronger" (s)he said.

BWAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!
 

D_Tintagel_Demondong

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Well clearly that has to be the next step. I wonder if she/it/he is paid by the number of Obama bashing threads it starts or Faux News rah rah rah threads it starts or the RNC propaganda it posts. But the truly classic one remains : Gov. Sarah Palin's Speech was Epic that one left no room for doubt indeed we had no Hillarite as proclaimed. It was all a sham.

I never believed for a second that Trinity was a Hillary fan. Trinity only pushed Hillary to cause a rift among the Democrats. Trinity has barely mentioned Hillary this year... not even Hillary's Secretary of State appointment. As soon as Hillary accepted her fate and backed Obama as DNC leader, Trinity moved on to attack Obama and hasn't stopped since. Cougars be damned.
 

lucky8

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this was all expected. The only thing to worry about is the fact that banks that are "too big to fail" are getting bigger, and their competition is starting to die out...

someone had to say it...
 
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deleted15807

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I never believed for a second that Trinity was a Hillary fan. Trinity only pushed Hillary to cause a rift among the Democrats. Trinity has barely mentioned Hillary this year... not even Hillary's Secretary of State appointment. As soon as Hillary accepted her fate and backed Obama as DNC leader, Trinity moved on to attack Obama and hasn't stopped since. Cougars be damned.


The WSJ editorial page followed a similar track. It spent much of the early campaign season attacking Hillary until it became clear she was not going to be the nominee then it focused it's barrels on Obama and began firing relentless daily attacks much like Tirinity and Hillary? Well she's yesterday's news. The Enitity dropped Hillary equally as quickly and moved onto Palin. Right. Right.
 
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Elmer Gantry

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this was all expected. The only thing to worry about is the fact that banks that are "too big to fail" are getting bigger, and their competition is starting to die out...

someone had to say it...

Anything that is "too big to fail" is really too big to exist in the first place.

The consolidation of the banking sector in the US is very disturbing.
 
D

deleted15807

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Even Dave Chapelle & Aaron McGrudder TOGETHER couldn't write an opening post in a thread any funnier. "Keep on attacking her... you'll only make her stronger" (s)he said.

BWAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!

I'm sure in it's delusion It is getting stronger. Attending all those tea baggin parties and health reform scream feasts have given the Entity the illusion we are getting stronger.


Anything that is "too big to fail" is really too big to exist in the first place.

The consolidation of the banking sector in the US is very disturbing.

Under the Bushies anything big business wanted they had a sympathetic ear in the government. And now the laissez-faire bill has come due.
“too big to fail” was evidence of a failure of antitrust enforcement says Assistant Attoney General for Antitrust Christine Varney announced a sharp break with the Bush administration on competition policy.

-------------------------

The Bush Administration has never met a merger it didn’t like. That’s the conclusion of a column in today’s New York Times by Stephen Labaton, “New View of Antitrust Law: Hear No Evil, See No Evil.”

While the administration “continues its unsurprising policy of aggressively combating cartels and price-fixing … in other areas of antitrust law, the administration has taken the most relaxed and least aggressive approach since the last years of the Reagan presidency.”

 
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faceking

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this was all expected. The only thing to worry about is the fact that banks that are "too big to fail" are getting bigger, and their competition is starting to die out...

someone had to say it...

I expected this... and as of now... am still on the low side of number of failures.... expected more strong "regional" banks to go.
 

faceking

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Well clearly that has to be the next step. I wonder if she/it/he is paid by the number of Obama bashing threads it starts or Faux News rah rah rah threads it starts or the RNC propaganda it posts. But the truly classic one remains : Gov. Sarah Palin's Speech was Epic that one left no room for doubt indeed we had no Hillarite as proclaimed. It was all a sham.


Tacky... bank failures have little/nothing to do with Bush/Obama/Palin/etc... get your head out of your ass... at least this one time.