The bank failures continue and the Administration remains mostly mute.  
If this were a republican, the left would be all over them.  Instead 
their response is "What can Obama do about it ?"

==================================================

http://finance.yahoo.com/news/Regulators-shut-down-banks-in-apf-
1868747589.html?x=0&sec=topStories&pos=4&asset=&ccode=

Regulators shut down banks in 5 states

Regulators shutter banks in Calif., Fla., Ga., Minn., Wash., totaling 15 
bank failures in 2010 

WASHINGTON (AP) -- Regulators shut down a big bank in California on 
Friday, along with two banks in Georgia and one each in Florida, 
Minnesota and Washington. That brought to 15 the number of bank failures 
so far in 2010 atop the 140 shuttered last year in the punishing 
economic climate.

The failure of Los Angeles-based First Regional Bank, with nearly $2.2 
billion in assets and $1.9 billion in deposits, is expected to cost the 
federal deposit insurance fund $825.5 million.

The Federal Deposit Insurance Corp. took over the bank as well as the 
others: First National Bank of Georgia, based in Carrollton, Ga., with 
$832.6 million in assets and $757.9 million in deposits and Community 
Bank and Trust of Cornelia, Ga., with $1.2 billion in assets and $1.1 
billion in deposits; Florida Community Bank of Immokalee, Fla., with 
$875.5 million in assets and $795.5 million in deposits; Marshall Bank 
of Hallock, Minn., with $59.9 million in assets and $54.7 million in 
deposits; and American Marine Bank of Bainbridge Island, Wash., with 
$373.2 million in assets and $308.5 million in deposits.

First Regional Bank's collapse followed the shutdown of several large 
California banks in the last months of 2009. California was one of the 
states hardest hit by the real estate market meltdown, and many banks 
there have suffered under the weight of soured mortgage loans. Last year 
saw the failure of 17 banks in the state.

First-Citizens Bank & Trust Co., based in Raleigh, N.C., agreed to buy 
the deposits and $2.17 billion of the assets of First Regional Bank. The 
FDIC retained the remaining assets for later sale. In addition, the FDIC 
and First-Citizens agreed to share losses on $2 billion of the failed 
bank's loans and other assets.

Community & Southern Bank, also based in Carrollton, Ga., agreed to 
assume the deposits and assets of First National Bank of Georgia.

SCBT, a national bank based in Orangeburg, S.C., is assuming the assets 
and deposits of Community Bank and Trust. United Valley Bank, based in 
Cavalier, N.D., is buying the assets and deposits of Marshall Bank.

Miami-based Premier American Bank, N.A., a new bank with a national 
charter set up last week, is buying the deposits and $499.1 million of 
the assets of Florida Community Bank. The FDIC will retain the remaining 
assets for later sale. In addition, the FDIC and Premier American Bank -- 
owned by the investment firm Bond Street Holdings -- agreed to share 
losses on $305.4 million of Florida Community Bank's loans and other 
assets.

Columbia State Bank, based in Tacoma, Wash., is assuming the assets and 
deposits of American Marine Bank.

The two shuttered banks in Georgia followed 25 bank failures there last 
year, more than in any other state.

The government's resolution of First National Bank of Georgia is 
expected to cost the deposit insurance fund $260.4 million. That of 
Community Bank and Trust is estimated to cost $354.5 million. Florida 
Community Bank's resolution is expected to cost the fund $352.6 million 
and Marshall Bank is expected to cost $4.1 million. The hit to the fund 
from American Marine Bank is estimated at $58.9 million.

As the economy has soured, with unemployment rising, home prices 
tumbling and loan defaults soaring, bank failures have accelerated and 
sapped billions out of the federal deposit insurance fund. It fell into 
the red last year.

The 140 bank failures last year were the highest annual tally since 
1992, at the height of the savings and loan crisis. They cost the 
insurance fund more than $30 billion. There were 25 bank failures in 
2008 and just three in 2007.

The number of bank failures is expected to rise further this year. The 
FDIC expects the cost of resolving failed banks to grow to about $100 
billion over the next four years.

The agency last year mandated banks to prepay about $45 billion in 
premiums, for 2010 through 2012, to replenish the insurance fund.

Depositors' money -- insured up to $250,000 per account -- is not at 
risk, with the FDIC backed by the government. Besides the fund, the FDIC 
has about $21 billion in cash available in reserve to cover losses at 
failed banks.

Banks have been especially hurt by failed real estate loans, both 
residential and commercial. Banks that had lent to seemingly solid 
businesses are suffering losses as buildings sit vacant. As development 
projects collapse, builders are defaulting on their loans.

If the economic recovery falters, defaults on the high-risk loans could 
spike. Many regional banks hold large concentrations of these loans. 
Nearly $500 billion in commercial real estate loans are expected to come 
due annually over the next few years.

In his State of the Union address this week, President Barack Obama said 
he will initiate a $30 billion program to provide money to community 
banks at low rates, if they boost lending to small businesses. The money 
would come from balances left in the $700 billion bailout fund.

Hundreds of banks, including major Wall Street institutions, received 
taxpayer support through that politically unpopular rescue program, 
enacted by Congress in October 2008 at the height of the financial 
crisis.

CMPQwk 1.42-21 9999 
Socialism can work until you run out of everyone elses money .....

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