It's just another Friday, but Fridays are the days that Bank Failures are announced. (see you learned something today – "Failure Friday" as opposed to "Merger Monday"). You can't make this stuff up! This Friday is especially dismal, because two announcements are in the wind; actually the second announcement is a "twofer".
The first failure is a relatively small one compared to the second one.
Associated Press article - Silver State Bank Failure According to the article "The FDIC estimated its resolution will cost the deposit insurance fund between $450 million and $550 million. Regular deposit accounts are insured up to $100,000. There were about $20 million in uninsured deposits held in roughly 500 accounts at Silver State that potentially exceeded the insurance limit, the FDIC said."Here comes the "twofer"!
"That ain't nothing" compared to this story Treasury set to bail out Fannie Mae, Freddie Mac . This was no surprise to those in the know; which may have been the real reason the "Housing Bill" was passed. The "relief" to the homeowners was just throwing a bone to the consumers. Now you know why the "Housing Bill" was passed before the Congressional summer recess!
Although technically, this is not a "bank failure"; tell that to the shareholders on Monday. Fannie Mae & Freddie Mac Shareholders Look Doomed (FNM, FRE). Now you know why the stock market was so erratic this week.
Ouch !! Remember this article in OpEd news If a Bank can't pay the Mortgage on its own Property-Can it foreclose on itself? June 29, 2008? I received plenty of emails that said I was totally wrong, and was laughed at. How can a large bank(s) fail – "they" said? Remember, this article Dr. Doom and Joseph Russo
What more can I say? – Stay tuned 'till next time. – Next Friday perhaps?