Sunday, February 01, 2009

Another Three Bite the Dust

Three more banks failed this weekend.

Ocala National Bank out of Florida was seized because it was about to run out of money. Regulators cited 'unsafe and unsound' lending practices as one of the reasons that the bank was closed.

Suburban Federal Savings Bank of Crofton, Maryland became the first Maryland bank casualty since 1993. According to reports, the bank implemented an aggressive lending program that required little to no proof of the borrower's salary or ability to pay.

It is a BIG surprise this bank failed. Luckily, they found a buyer.

MagnetBank out of Utah wasn't so fortunate. Closed because it was declared insolvent, the FDIC asked over 320 different bidders to purchase the bank, with not one of them interested. That's pretty bad.

But even though the bank is closed, the depositors will be getting checks in the mail, courtesy of the US gov. Don't you love picking up the bill for incompetent (at best) management?

More info at Bank Closure Map.