7 Banks Have Failed So Far This Year...
The Office of the Comptroller of the Currency, a division of the Treasury Department, revoked the charters of First National Bank of Nevada, based in Reno, Nev., and First Heritage Bank of
Newport Beach,
Calif. The FDIC was appointed receiver of both banks.Seven banks have failed so far this year, including three having more than $1 billion of assets.
The number of failed banks this year has already surpassed the total from 2004 through 2007, but it is nowhere near the pace set during the savings and loan crisis in the 1980s and early 1990s, when several thousand banks failed.
Regulators have been preparing for more bank failures by adding staff, bringing on contractors, and intensifying training. The FDIC, which was created in 1933, has made a concerted push in recent months to educate bank customers about the deposit insurance rules. The FDIC insures accounts up to $100,000 per depositor, or $250,000 for some qualified retirement accounts.
The FDIC said Friday night's failures would likely cost the FDIC's deposit insurance fund roughly $862 million.
Courtesy of the Sunday edition of WSJ.com
Wise Owl