Friday, February 6, 2009

2 More Banks Take a Powder



Alliance Bank (Culver City, CA) and FirstBank Financial Services (McDonough, GA) were shuttered by the FDIC today. The 2009 total is now 8 closed banks. Both institutions were on the bad bank list.

Earlier this week, the Chief Operating Officer of the FDIC mentioned these tidbits:

- TLGP backed debt totaled $221 billion as of 1/28/09

- the FDIC suggested increasing its credit line with the Treasury Department to $100 billion (from the current $30 billion)

- FDIC losses will "probably be higher" than the $40 billion estimate from last Autumn

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