Banks Fail in Colorado, North Carolina
Updated from 10:21 a.m. EDT
Regulators shut down two banks Friday, bringing the total number of bank and thrift failures during 2009 to 23. For the third time in less than a month, the FDIC apparently was unable to find a buyer for one of the failed institutions.
The Colorado State Bank Commissioner shut down New Frontier Bank of Greeley, Colo. and named the FDIC receiver. The FDIC created the Deposit Insurance National Bank of Greeley, which was to operate for about 30 days and allow New Frontier's retail savings and checking depositors to move their insured balances to other institutions. The rest of New Frontier's deposits were to be returned directly to depositors or, in some cases, to brokers.
Meanwhile, The North Carolina Commissioner of Banks shut down Cape Fear Bank of Wilmington, N.C. and appointed the Federal Deposit Insurance Corp. receiver. The FDIC then arranged for First Federal Savings and Loan Association of Charleston (held by First Financial Holdings (FFCH)) to acquire all the deposits of the failed institution and most of its assets. Cape Fear Bank's holding company was Cape Fear Bank Corp. (CAPE).
New Frontier Bank
New Frontier Bank had total assets of $2.0 billion and total deposits of roughly $1.5 billion. The FDIC apparently didn't find another institution willing to acquire New Frontier's deposits. Instead, it created a Deposit Insurance Bank to allow savings and checking depositors to move their insured funds to other institutions over the next 30 days. Deposit Insurance National Bank of Greeley will be administered by Bank of the West of San Francisco, and checks written against New Frontier accounts will continue to be paid until the Deposit Insurance Bank closes. Deposits transferred to the Deposit Insurance Bank totaled about $150 million. The remaining CD and IRA deposits will be returned by check directly to the depositors, or, for brokered CDs, to the brokers.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV