Friday Plagued By Bank Failures

Friday was a busy day for the Federal Deposit Insurance Corporation (FDIC). Unfortunately, being busy isn’t considered positive when you are in the FDIC’s line of work.

Photo by zieak, courtesy of flickr

Three banks and two credit unions failed on Friday.

Here is the list of the banks, according to MarketWatch:

FirstCity Bank (Stockbridge, Georgia) was closed and checks for insured deposits will be mailed out next week. SunTrust will take over some other deposits.

The deposits of Colorado National Bank (Colorado Springs, Colorado) will be assumed by Herring Bank (Texas).

The deposits of Teambank (Paola, Kansas) will be assumed by Great Southern Bank (Missouri).

The two failed credit unions listed below will continue to operate, but are now under federal conservatorship.

Western Corporate Federal Credit Union (San Dimas, California) had $34 billion in assets.

U.S. Central Federal Credit Union (Lenexa, Kansas) had assets totaling $23 billion.

Credit union failures are handled by the National Credit Union Association (NCUA) which has insurance provisions similar to those of the FDIC. Deposits of credit union members are guaranteed by the National Credit Union Share Insurance Fund.

The year’s total number of bank failures now stands at twenty. Last year, there were twenty-five.