2009’s First Round of Bank Failures

The world-bemoaned financial crisis has begun its first round of chopping off heads during the first two banks in the year 2009. The total approximate cost is more than two hundred million dollars according to the FDIC or the Federal Deposit Insurance Corp. Last Friday, the FDIC or the Federal Deposit Insurance Corp announced that NBC or the National Bank of Commerce located in Berkeley Illinois as well as Bank of Clark County located in Vancouver Washington had also been shuttered. BCC or the Bank of Clark County was also the first bank located in the Washington state area to actually proclaim failure ever since 1993. All across the country, more economic problems have been deepening and that the number of bank failures had also risen dramatically. During the previous year around twenty five banks had closed. This is pretty alarming considering only three banks declared closing in 2007 while there were no declarations of the same sort in 2006 and 2005.

Workings Meetings to Arrive at Agreement

This coming Friday, the Federal Deposit Insurance Corp. will be entering into a joint purchase and assumption agreement along with the Republic Bank of Chicago found in Oak Brook Illinois. This is to assume that the deposits of the National Bank of Commerce will have been met. The National Bank of Commerce had previously declared that they had a total amount of assets to around four hundred and thirty point nine million dollars and also some total deposits of four hundred and two point one million.

More Declarations from Other Banks and Bodies

Meanwhile, the Republic Bank will intend to purchase around three hundred sixty six point six million United States dollars worth of assets from the National Bank of Commerce for a very attractive discounted price of forty four point nine million United States dollars. This was according to the Federal Deposit Insurance Corp which shall retain everything else that was left behind for future distribution. The Federal Deposit Insurance Corp also notes that two branches of the National Bank of Commerce will resume its operations this coming Saturday but will take on the name of Republic Bank of Chicago. The Federal Deposit Insurance Corp also estimates that the entire cost of the Deposit Insurance Fund would probably reach a total of ninety seven point one million. In a separate statement, the Federal Deposit Insurance Corp also said last Friday that they will enter yet another assumption and purchase agreement with another bank – this time the Umpqua Bank of Rosenburg in Oregon. This is to assume that the deposits of the Bank of Clark County will be insured. This bank, on the other hand, has total assets of around four hundred and forty six point five million dollars and deposits totaling to three hundred and sixty six point five million dollars.