Top of the News: Friday is bank closing day in America. It’s the day that the FDIC moves in and shuts failing banks, folds their insured deposits into more solvent institutions, boots the failed bankers and tells the bank investors and bondholders, essentially, good luck.
For example, last Friday Great Basin Bank of Elko, Nev. and American Sterling Bank of Sugar Creek, Mo., were seized. The Nevada bank cost the strained FDIC fund $42 million. It was the 25th FDIC-insured institution to fail this year. It won’t be the last. I spend my Friday afternoons watching my email for the FDIC bulletins.
As Edward Harrison of Global Macro Advisers points out, this receivership applies to small banks, not the TARP guzzling “too big to fail bunch,” whose investors, bondholders and executives are protected. BTW, total value of TARP, TALF, Fed facilities, etc: $4 trillion.
Oh, it was used with giant Washington Mutual, hardly the worst run financial institution in America but the least politically powerful. Hmmmm. Oh, well, move on, nothing to see here.
Look around noon for this week’s haiku contest. Vote early and often. And, as always, you can post your own haikus in the comments section. Last week’s winner:
Ironic, to balk
At lesbian books when your
Name is Amazon
Today’s Econ Haiku:
Could have been much worse
So the Street loves Microsoft
Balmer for their pain