Six Banks Fail, 2010 Tally at 15
WASHINGTON (TheStreet) -- Six community banks failed Friday, bringing the 2010 tally of failed U.S. banking institutions to 15.
Friday's failures are expected to cost the Federal Deposit Insurance Corp.'s insurance fund a total of $1.9 billion.
All six failed institutions had been previously assigned E-minus (Very Weak) financial strength ratings by TheStreet.com Ratings, and all were included in TheStreet.com's list of undercapitalized banks and thrifts.
The Office of the Comptroller of the Currency shut down First National Bank of Georgia of Carrollton, Ga., a subsidiary of WGNB (WGNB.PK). The FDIC was appointed receiver and sold the failed bank's $758 million in deposits for a 1.25% premium to Community & Southern Bank, also of Carrollton, Ga.Community & Southern also acquired the failed bank's $833 million in assets, with the FDIC agreeing to share in losses on $607 million and estimating that the cost to its insurance fund would be $260.4 million. First National Bank of Georgia's 11 offices were set to reopen Saturday as Community & Southern branches. > > Bull or Bear? Vote in Our Poll State regulators took over another Georgia bank, Community Bank and Trust of Cornelia. The FDIC was appointed receiver and arranged for SCBT NA of Orangeburg, S.C. to take over the failed bank's $1.1 billion in deposits and $1.2 billion in assets for no premium. SCBT NA is a subsidiary of SCBT Financial (SCBT). The FDIC agreed to share in losses on $828 million of the acquired assets, and estimated the failure of Community Bank and Trust would cost the deposit insurance fund $354.5 million. The failed Bank's 36 branches were scheduled to reopen during normal business hours as SCBT branches, although they will continue to operate under the Community Bank and Trust name.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All 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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV