Friday, August 14, 2009

Colonial Bank failure

So Colonial Bank, with $26 billion in assets is going to fail today. For a preview of bank failure cost to the Deposit Insurance Fund over the next few weeks from the failure of Colonial, Corus, & Guaranty Financial, and the Fund's estimated current balance, see the chart below.

The FDIC will undoubtedly have to tap the Treasury Line of Credit after the Colonial debacle unless BB&T (it's lucky new owner) is allowed to hide all of the losses.

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