Monday, November 09, 2009
On top of the $3.2 billion lost earlier this month when CIT filed for bankruptcy, the federal government’s bank rescue effort is now out of another $1.7 billion because of the collapse of United Commercial Bank. The San Francisco-based bank has the distinction of being the first financial institution to receive TARP bailout money to be shut down by the Federal Deposit Insurance Corporation (FDIC). The so-called “healthy bank” received $299 million in TARP funds, and its failure will now cost the FDIC $1.4 billion.
United Commercial was not the only bank to go under last Friday. FDIC officials also seized institutions in Georgia, Michigan, Minnesota, and Missouri, bringing the 2009 total to 120 and counting. The total represents the most failures since 1992, when the FDIC shuttered 181 banks.
-Noel Brinkerhoff
Bank Failure Friday Fells Another ‘Healthy Bank’ Bailout Recipient (by Jake Bernstein, ProPublica)
Four Banks in Govt’s ‘Healthy Bank’ Bailout Struggle to Survive (by Paul Kiel, ProPublica)
U.S. Taxpayers Lose $2 Billion as CIT Goes Bankrupt (by Noel Brinkerhoff, AllGov)
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