By John Letzing, MarketWatch
Last update: 6:55 p.m. EDT Oct. 31, 2008
SAN FRANCISCO (MarketWatch) -- Bradenton, Fla.-based Freedom Bank was closed Friday, marking the 17th bank failure so far this year amid the ongoing credit crisis.
The Federal Deposit Insurance Corporation said in a statement that as of Oct. 17, Freedom Bank had $287 million in total assets and $254 million in total deposits.
Freedom Bank's four branches will open Monday as branches of Fifth Third Bank, which has assumed Freedom Bank's deposits, according to the regulator.
Fifth Third agreed to assume Freedom Bank's deposits for a premium of 1.16%, and will purchase roughly $36 million of its assets. The FDIC also said it will retain the remaining assets.
The FDIC estimates the cost of the failure to its deposit-insurance fund will be between $80 million and $104 million. End of Story
John Letzing is a MarketWatch reporter based in San Francisco.
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I hope they all go bankrupt.
ReplyDeletelet the forest burn and new seedlings will spring from the ashes.
Absolutely. Do not reward poor management by bailing them out. When you bail out banks you reward failure and penalize those that run their businesses well.
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