Using cutting edge research, this blog predicts and comments on the probability of failure for the nearly 7000 regulated banks monitored by the Federal Reserve. While most depositors may be protected by the FDIC, the importance of bank survival is still very important to bank clientele with lines of credit, mortgages, loans or other forms of financing. We seek to inform people that they might be at risk.
Friday, March 9, 2012
Number One Fails
New City Bank, the riskiest commercial bank on our current Top 40 list, has failed. There was no acquirer for the bank. As of December 31, 2011, New City Bank had $71.2 million in total
assets and $72.4 million in total deposits. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF)
will be $17.4 million. New City Bank recently made headlines for a federal indictment against one of its investors and Vice-Chairman, William Beavers, for failing to report and pay income taxes.
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