Remember “failure Fridays”? When the FDIC shuts down a troubled bank, it always moves in after the bank closes on Friday evening, so it can work over the weekend to get it ready to reopen on Monday under new management, and avert panic.
Well, today the FDIC shut down its 17th bank so far this year, First Community Bank of Southwest Florida in Fort Myers, Fla., which has about $254.2 million in deposits. The bank’s seven branches will reopen Monday as branches of C1 Bank, which will assumed the failed banks deposits and “essentially all” of its assets, the FDIC said.
So are “failure Fridays” back? Not at all. At the height of the downturn, it seemed like the FDIC was shutting down banks every week (and, as a matter of fact, there were an average of nearly three bank failures a week during 2009 and 2010).
The FDIC hasn’t had to take over a bank since June 7, and at the current pace 2013 will see the lowest number of bank failures since 2008, when 25 FDIC-insured institutions went under, Calculated Risk reports. Source: calculatedriskblog.com.