We all know bad economic times are fully upon us and unfortunately it is just beginning. When Paul Krugman says stuff like this, it isn't a good sign. When twenty banks fail in less than a year, that is bad news. The latest victim to fall is the Community Bank of Georgia.
From ABC News:
The Federal Deposit Insurance Corp. was appointed receiver of the bank, located in Loganville, Ga. It had $681 million in assets and $611.4 million in deposits as of Oct. 17.
The FDIC said all the bank's deposits and about $84.4 million of its assets will be acquired by Bank of Essex, of Tappahannock, Va. Its four branches will reopen Monday as offices of Bank of Essex.
The agency said depositors of The Community Bank will continue to have full access to their deposits.
The FDIC estimated that the resolution of The Community Bank will cost the federal deposit insurance fund between $200 million and $240 million.
Thankfully the FDIC can help customers from their bank's bad practices, but we all share the burden because the money ultimately comes from the taxpayers. Nearly a quarter of a billion dollars can go to a lot of good programs or pay down our debt. Instead it is spent to fix the damage of banks that got too greedy and made themselves collapse. Oh the billions trillions we must spend to get us out of this hole!
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