California, Georgia banks are latest to be seized ( 8th in '09-33rd total)

[underpants]

Source: Wall Street Journal Market Watch

SAN FRANCISCO (MarketWatch) -- Federal regulators shut down a bank in Southern California and another in the Atlanta area on Friday, bringing the number of U.S. failures this year to eight, while marking the 33rd collapse since the recession began.

McDonough, Ga.-based FirstBank Financial Services and Culver City, Calif.-based Alliance Bank were seized, according to the Federal Deposit Insurance Corp. has agreed to assume all of FirstBank's deposits and purchase roughly $17 million of the failed bank's assets, the FDIC said.

As for California's Alliance Bank, San Diego-based California Bank & Trust has agreed to assume the failed bank's deposits, the FDIC said. Alliance's five offices will reopen Monday as branches of California Bank & Trust.

Read more: http://www.marketwatch.com/news/story/California-Georgia-banks-latest-failures/story.aspx?guid={0ADB4918-43F9-46A3-8EDD-19A2503A81B3}

[nadinbrzezinski]

1. now this is mid level banks

goody....

[Baby Snooks]

2. But I thought we were bailing them out?

Or were we simply bailing out the large banks so they would survive and "absorb" the smaller banks?

[FarCenter]

3. Too small to bail out

These had 4 branches and 5 branches. Quite small banks. Most of their business was taken over by larger banks. Total cost to FDIC was around $300 million to close them.