Weekend Economists Revere Two Kings January 16-19, 2015

[Demeter]

1. I sincerely doubt that any bank will be closed today SURPRISE!

Last edited Fri Jan 16, 2015, 08:18 PM - Edit history (1)

Although, if they were foolish enough to get caught in the currency crossfire...we shall see!

First National Bank of Crestview, Crestview, Florida, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First NBC Bank, New Orleans, Louisiana, to assume all of the deposits of First National Bank of Crestview.

The three former branches of First National Bank of Crestview will reopen as branches of First NBC Bank on Tuesday, the first business day of the week given the Martin Luther King, Jr., holiday...As of September 30, 2014, First National Bank of Crestview had approximately $79.7 million in total assets and $78.6 million in total deposits. In addition to assuming all of the deposits of First National Bank of Crestview, First NBC Bank agreed to purchase approximately $62.0 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $4.4 million. Compared to other alternatives, First NBC Bank's acquisition was the least costly resolution for the FDIC's DIF. First National Bank of Crestview is the 1st FDIC-insured institution to fail in the nation this year. The last FDIC-insured institution closed in the state was Valley Bank, Fort Lauderdale, on June 20, 2014