22 May, 2010

Regulators shut small Minnesota bank

USA Today
Regulators on Friday shut down a small bank in Minnesota, bringing the number of U.S. bank failures this year to 73.

The Federal Deposit Insurance Corp. took over Pinehurst Bank, based in St. Paul, with $61.2 million in assets and $58.3 million in deposits. Coulee Bank, based in La Crosse, Wis., agreed to assume the assets and deposits of the failed bank.

The failure of Pinehurst Bank is expected to cost the deposit insurance fund about $6 million.

With 73 closures so far this year, the pace of bank failures is more than double that of 2009, already a brisk year for shutdowns. By this time last year, regulators had closed 36 banks. The pace has accelerated as losses mount on loans made for commercial property and development.

Washington likes to assure us that our economic recovery is underway and that the TARP money was almost singularly the reason prosperity is within sight.
I've also heard these same voices blame the banking crisis on lack of regulation. Hmm.
Oh yeah. The FDIC can cover our bank deposits. Been hearing that one for 30 years.


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