WASHINGTON – The FDIC on Friday took over seven more banks with almost $15 billion in assets, making a total of 140 bank failures so far in 2009.
Friday’s failures included: $6.1 billion First Federal Bank in Santa Monica, Calif.; $4 billion Imperial Capital Bank in La Jolla, Calif.; $1.8 billion Peoples First Bank in Panama City, Fla.; $1.5 billion New South Federal Bank in Irondale, Ala.; $585 million Independent Bankers’ Bank in Springfield, Ill.; $295 million RockBridge Commercial Bank in Atlanta; and $169 million Citizens State Bank in New Baltimore, Mich.
Earlier last week, the FDIC boosted its 2010 budget by 56% to $4 billion to manage further failures. The total budget will increase from $2.6 billion and the set-aside for bank failures doubles to $2.5 billion over this year. The increased funding will pay for an additional 1,600 workers to be hired by the banking regulator.
The budget “will ensure that we are prepared to handle an ever-larger number of bank failures next year, if that becomes necessary,” FDIC Chairman Sheila Bair.
Friday’s bank closings will cost the agency about $1.8 billion, according to the FDIC statements.
