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.

1st Centennial Bank Closes

Another bank has failed. If you check the Bank Closure Map you will see that 1st Centennial Bank of Redlands, California was closed by state regulators today.

Although the Federal Government has tried to use the bailout money to stem the seizure of banks, it looks like that is not going to be enough to hold the dam. Small banks like this one are the canaries in the coal mine.

Look for the floodgates to burst if Citi or Bank of America get nationalized. And, if some reports are to be believed, they are already looking like they are or will be soon.