No Banks Closed This Week
How about some non-news for a change. This week, not a single bank closed, so we’re still sitting on 98 bank closures.
This is a big deal. Why? Because since January 16th, when the first bank closures of the year occurred, this is only the 4th weekend where there wasn’t a single bank closure. And most of those weeks, there was more than one bank that closed.
What’s changed? Actually, not all that much. However, finally, some state commissions have decided to start looking at the banking systems within their states to see if they can intercede before any more banks closed. Just this week, Minnesota listed 83 banks as being on the endangered list, which they claim is 1 in 5 banks. There was also a look at bank closures in Georgia to try to determine if anything can be done there to stem the tide.
Not only that, but the FDIC was in the enviable position of being able to sell its stake in a bank it took over back in September, Corus Bank in Chicago (which was finally taken over by MB Financial Bank), or at least 40% of its stake in that bank, which is worth around $554 million dollars. About time they got some money back instead of having to spend it all.
This is a nice reprieve from all the bank closures. I hope it continues through another week, as it would be a nice sign that maybe some balance is about to come.