Friday, December 5, 2008

Another Bank Failure

The FDIC closed another bank today (it was on my bad bank list). It was a small bank in Georgia, less than $300 million in assets. As I have mentioned before, it is important to not just track the number and size of bank failures, but also the ratio of FDIC costs to asset size. Yet again, the FDIC will take a loss that amounts to 30% of a bank's assets. There is no legitimate oversight of our banking industry.

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