Three of the four federally insured banks to fail last week were in the Midwest.
Satilla Community Bank was the first to go Friday, with the Georgia Department of Banking and Finance seizing it and the Federal Deposit Insurance Corporation taking over as receiver. Ameris Bank assumed the deposits and acquired the assets of the Saint Marys, Ga., bank.
On June 30, 2009, Satilla was slapped with an FDIC cease-and-desist order.
Next, New Liberty Bank was closed by the Michigan Office of Financial and Insurance Regulation. The state said that it would be “business as usual” as of Saturday morning. An FDIC cease-and-desist order was issued against new Liberty, based in Plymouth, Mich., on June 17, 2009.
After that, the Missouri Division of Finance shut down Southwest Community Bank in Springfield, Mo. Simmons First National Bank acquired the assets and deposits of Southwest.
Including the failure of Midwest Bank and Trust Co., which was already reported this weekend, 72 federally insured banks have failed this year.
MortgageDaily.com has tracked to the closings of 90 mortgage-related operations so far this year.
Expected losses of $301 million from last week’s failures are peanuts compared to the more than $7 billion the FDIC expected its Deposit Insurance Fund to lose as a result of seven bank failures on April 30.
If approved by a bankruptcy judge — Lone Star Funds will pay $10.5 million in cash, subordinate a $100 million claim and give up a secured claim on $1.25 million in cash in return for a release from claims that Accredited Home Lenders Holding Co. creditors plan to bring in an un-filed lawsuit, Bloomberg reported.
