The 9th bank of 2008 has just been shut down by the FDIC. 9 down, at least 991 to go.
For some historical perspective, 9,000 failed during the Great Depression and almost 3,000 during the S&L crisis. Anyone think the number won’t reach at least 1,000, given that between $1 trillion and $2 trillion in loses are expected? Total loses during the S&L crisis totaled only $0.16 trillion!
The Columbian Bank and Trust Company, Topeka, Kansas, was closed today by the Kansas Bank Commissioner J. Thomas Thull, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Bank and Trust, Chillicothe, Missouri, to assume the insured deposits of The Columbian Bank and Trust Company.
The nine branches of The Columbian Bank and Trust Company will reopen on Monday as branches of Citizens Bank and Trust. Depositors of the failed bank will automatically become depositors of Citizens Bank and Trust. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage.