Quote:
Originally Posted by Scott S
My small town bank (Silver Falls Bank) went broke two weeks ago and the FDIC stepped in to insure the funds with $50 million.
Anybody want some $40 stock for .26 cents a share? I got plenty for sale.... 
What I don't understand is while the FDIC put up money to insure the accounts not one account failed, another bank bought up all the assets and the bank reopened the next day under a new name.
What happened to the 50 million?
Scott S |
Scott
Actually, Silver Falls Bank, of Silverton, Oregon, had $131.4 million in assets and $116.3 million in deposits, as of Feb. 9 - therefore, they had only $15.1 in capital. The $50 million that you noted is the estimated cost to the FDIC covering the liquidation of assets that were not purchased by Citizens Bank of Corvallis (purchased only $13 Million in assets).
Therefore, the FDIC is stating that $103 Million in asset all require $50 million is FDIC funds to liquidate - an astounding percentage. Liquidate means primarily charging off loans and selling securities.