Letter Re: A Closer Look at Bank Closures–Failed Banks Without Buyers

James Wesley,

You recently posted this article: Seven banks closed in Fla., Ga., Ill., Kan. Remember something we’ve been trying to focus on?

Watch closely for banks for which the FDIC cannot find a buyer.

Read closely… in that article there were a couple banks that were only partially purchased by other banks. The FDIC held on to some of the liabilities of some of the banks.

The real zinger is the First Arizona Savings bank – completely shut down, no buyer, no more bank. The FDIC is sending checks to those customers (hope you didn’t have more than $250,000 in an account there).

I mentioned before on the blog that the FDIC in Illinois is having more and more trouble finding buyers. I do not know about other states but Arizona has been one of the hardest hit so it doesn’t surprise me that we’d see one of the earliest indications of a cracking foundation there.

Thanks for the great effort that you and yours put out to keep this blog on top of everything effecting us. – Tanker