Via Calculated Risk:
From the FDIC: Pacific Western Bank, San Diego, California, Assumes All of the Deposits of Affinity Bank, Ventura, California
Affinity Bank, Ventura, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. …
As of July 10, 2009, Affinity Bank had total assets of $1 billion and total deposits of approximately $922 million. …
The FDIC and Pacific Western Bank entered into a loss-share transaction on approximately $934 million of Affinity Bank’s assets. …
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $254 million. … Affinity Bank is the 84th FDIC-insured institution to fail in the nation this year, and the ninth in California. The last FDIC-insured institution closed in the state was Vineyard Bank, National Association, Rancho Cucamonga, on July 17, 2009.A quarter of billion here, a quarter of a billion there …
The FDIC is already running out of cash, they have raised rates time and time again, and are quickly going to have to go back to the well for another special assessment. The most frightening thing about this to me is simply that we are nowhere close to the volume of failures that happened during the S&L crisis. We are almost out of funding to insure deposits and these costs keep mounting.
How is it that the FDIC can say that a bank is well capitalized one day, and shut it down the next – with hundreds of millions in losses? I find it very hard to believe that the bank suddenly lost 254 million overnight. I mean really, lets be realistic – did the market collapse again while I was sleeping?
