Yep! Missed another one. Here's what should have appeared in the"Obligatory Friday Bank Failure(s) Post":
SAN FRANCISCO (MarketWatch) -- Northville, Mich.-based Main Street Bank and Eldred, Ill.-based Meridian Bank became the latest victims of the ongoing financial crisis on Friday, when they folded and their deposits were transferred by the Federal Deposit Insurance Corp.The closures are the 14th and 15th bank failures so far this year.The FDIC said in a prepared statement that Main Street Bank had $98 million in total assets and $86 million in total deposits as of Tuesday. All of Main Street's deposits were assumed by Monroe, Mich.-based Monroe Bank & Trust, the FDIC said.The FDIC said that Meridian Bank had total assets of $39.2 million and $36.9 million in total deposits as of Sep. 25. National Bank will buy roughly $7.6 million of Meridian's assets, while the FDIC will "retain the remaining assets for later disposition," according to its statement. All of Meridian Bank's depositors, "including any with deposits in excess of the FDIC's insurance limits," will automatically become depositors of Hillsboro, Ill.-based National Bank, the FDIC said.The FDIC said Main Street Bank's failure will cost its insurance fund between $33 million and $39 million, while Meridian's failure will cost the fund between $13 million and $14.5 million.
The Bank Implode-O-Meter has a "Not-so-grand" total.
In related news from Britain, Savers vault from the banks to a safe place at home:
Sales of household safes have surged as wealthy savers concerned about the health of banks opt to keep cash at home.
Leading safe manufacturers contacted by The Times said that they had seen a big increase in demand. Many predicted that fears of meltdown in the banking sector would mean a further rush before Christmas.
One company said that sales had increased by a quarter, while another said that its staff had received calls from panicking investors who now wanted to keep their savings locked away at home.
Russ Reader, the managing director of Leigh Safes, which makes, fits and sells safes, said: “It’s simple: if there’s a lack of confidence in banks, people buy and fit European and insurance-approved safes and put the contents on their home insurance.
UPDATE: The Quadrillion Dollar Powder Keg Waiting To Blow: "The heart of the current crisis is the quadrillion plus derivative market. Roughly half of these derivatives are listed on exchanges, but the other half are on the totally unregulated, totally opaque, poorly documented and mostly naked (no reserves or collateral given to secure performance) OTC derivatives market."