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Two U.S. banks fail, first casualties in 2009

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posted on Jan, 17 2009 @ 07:54 PM
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Two U.S. banks fail, first casualties in 2009


www.reuters.com

By Susan Heavey

WASHINGTON (Reuters) - Bank regulators closed two small banks on Friday, the first U.S. banks to fail this year but the latest in an upsurge that began last year as the struggling economy and falling home prices took their toll on financial institutions.

The Federal Deposit Insurance Corp said National Bank of Commerce of Berkeley, Illinois and Bank of Clark County of Vancouver, Washington were closing with other banks taking over their insured deposits.

In 2008, 25 banks were seized by officials, up from just 3 in 2007.

National Bank had $430.9 million in assets and $402.1 million in deposits, with Republic Bank of Chicago assuming its insured deposits, the FDIC said. Republic Bank will also purchase $366.6 million in assets at a discount of $44.9 million, it added.

Umpqua Bank, a subsidiary of Umpqua Holdings Corp, agreed to assume insured deposits of the Bank of Clark County, which had $446.5 million in assets and $366.5 million in deposits, the FDIC said.
(visit the link for the full news article)



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posted on Jan, 17 2009 @ 07:54 PM
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I expect due to all I have been predicting(All of which is coming true) that within the next 4 to 6 months we will see over one-third of US banks collapse. You don't have to believe me, I'll just say what I always say, quote me on it later. This is a domino effect folks. And as government decreases the buying power of the dollar you will see more and more banks collapse under the weight of their own leverage, which is just another way of say ridiculous debt.

www.reuters.com
(visit the link for the full news article)

[edit on 17-1-2009 by projectvxn]



posted on Jan, 17 2009 @ 08:00 PM
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The banks that will fail, are those greedy banks that were loaning out money on high risk loans, and those loans have failed.

Good. Good to have them out of the banking business. They had no business there anyway.

Many, many smaller banks are very solid, with good growth, stable loans, and they'll do quite well. Many doubled their reserve before it became prudent to do so.

After all this shakes out, those who were smart, prudent, careful, and use due diligence will come out better than before.

Greed?

It's great. Right up until the minute it bites you in the ass and leads one to financial ruin.



posted on Jan, 17 2009 @ 08:04 PM
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dooper

Inflation may do in many smaller banks. Remember that even Prime loans are at the edge of the cliff, and as unemployment rises the number of defaults will follow. Small banks are not immune to that no matter how ethical they have been.



posted on Jan, 17 2009 @ 08:14 PM
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reply to post by dooper
 


The banks that will fail are the banks that are allowed to fail or forced into it. This isnt free market. A lot of these smaller banks did not get into the crap the big ones did. But because of the big banks killing the economy it is directly affecting smaller banks without the capital or that are in the "club" that the NY banks are in. This is what you call getting rid of competition and choosing winners and losers. Welcome to the USSA.

[edit on 17-1-2009 by mybigunit]



posted on Jan, 17 2009 @ 09:24 PM
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Originally posted by projectvxn

I expect due to all I have been predicting(All of which is coming true) that within the next 4 to 6 months we will see over one-third of US banks collapse. You don't have to believe me, I'll just say what I always say, quote me on it later. This is a domino effect folks. And as government decreases the buying power of the dollar you will see more and more banks collapse under the weight of their own leverage, which is just another way of say ridiculous debt.

www.reuters.com
(visit the link for the full news article)

[edit on 17-1-2009 by projectvxn]


Not to burst your theory but the dollar has been gaining purchasing power throughout the crisis...it's not the collapse of the dollar that is causing them to go belly up...so, you maybe right about the domino effect but that's mostly because of how banks hold bonds and other security deposits....but you obviously don't know what you're talking about in regards to how the collapse has occurred.



posted on Jan, 17 2009 @ 09:27 PM
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What we are seeing now is not a deflationary spiral. It is a market correction of artificial demand bubbles created by the fed to boost share prices. All this is doing is compounding the problem. You have to look beyond a drop in commodities to understand what is happening. You have to take the Feds actions into account and realize where we stand in terms of debt, and how that debt is financed to see where the inflation is coming from. Gold markets are also being artificially manipulated.

This is only temporary.

I also don't need to be told I don't know what I'm talking about from someone whose consistently gotten it wrong.

Edit to add this:
www.abovetopsecret.com...



[edit on 17-1-2009 by projectvxn]



posted on Jan, 17 2009 @ 10:29 PM
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Originally posted by yellowcard

Not to burst your theory but the dollar has been gaining purchasing power throughout the crisis...it's not the collapse of the dollar that is causing them to go belly up...so, you maybe right about the domino effect but that's mostly because of how banks hold bonds and other security deposits....but you obviously don't know what you're talking about in regards to how the collapse has occurred.


The dollar strength is temporary for it is just a casualty of deleveraging. The FED is trying to monetize via the printing press trillions of dollars that was lost from leveraged gambling losses via the big institutions. In a free market this debt would be allowed to be liquidated via bankruptcy which would in fact be deflationary. But this would need to happen to keep the system running on track. They are trying to manipulate the system and this will not last.




and this here

www.federalreserve.gov...

If this isnt a sign of the future inflation that is coming then I dont know what is.



posted on Jan, 17 2009 @ 10:34 PM
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mybigunit

Thanks for the graph there. I hate being the guy that does everyone's research for them. They tell me I don't know what I'm talking about and yet provide no evidence as to why they would feel that way.



posted on Jan, 17 2009 @ 10:44 PM
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Open your eyes, better yet, open your minds...This is another step in the move towards a socialistic government controlled infrastructure.

Bail out the big banks like B of A and CITI, and let all of the small banks fail. Let's tabulate. The government now owns a major stake in:

1. Banks
2. Transportation
3. Insurance
4. Mortgage Co's
5. Investment Brokerages

Have I missed something?

This is the move towards total control. When they own you because they own all the infrastructure, you WILL do as they say or else.

Now isn't that special?



posted on Jan, 17 2009 @ 10:47 PM
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HAH socialism is ridiculously expensive. No matter which way you go about it. Corporate or welfare for the little guy. It is unsustainable. More likely we will just collapse, and be absorbed either in war or some stupid NAU type deal.



posted on Jan, 17 2009 @ 10:52 PM
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reply to post by TH3ON3
 


"Have I missed something?"

Yeah, maybe the automobile business?



posted on Jan, 17 2009 @ 10:53 PM
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Originally posted by projectvxn
HAH socialism is ridiculously expensive. No matter which way you go about it. Corporate or welfare for the little guy. It is unsustainable. More likely we will just collapse, and be absorbed either in war or some stupid NAU type deal.


They don't care about your welfare...maybe that was a bad choice of words. They will control everything you need, like food, cars, money, insurance, mortgages etc.

Then when they implement the world wide tracking program, the universal id, and you wont play, you wont get what they control.
Further, you will be arrested and put in prison for being a dissenter.

So it is a forced socialism, yet not really for your benefit.



posted on Jan, 17 2009 @ 10:54 PM
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Originally posted by jsobecky
reply to post by TH3ON3
 


"Have I missed something?"

Yeah, maybe the automobile business?




Hey JSO, that is a term of endearment in my family.

We always call each other that.


[edit on 17-1-2009 by TH3ON3]

[edit on 17-1-2009 by TH3ON3]



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