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FDIC Insures Deposits Up To $250K

I ALMOST FORGOT TO MENTION THIS! Jeeze, I could get on myself for that. Two banks collapsed into the FDIC’s waiting arms this weekend, bringing the total number to 16 for 2009. There were 25 in 2008 total, so you decide. That’s 16 banks in 2 months, and there are another 10 to go (not to mention a number of other problems, such as commercial real estate, that may implode at any moment). It was another couple of small banks, Heritage Community Bank and Security Savings Bank. Heritage Community Bank was a bank out of Glenwood, IL, while Security Savings Bank was from Henderson, NV. MB Financial, NA and Nevada State Bank were the recipients, respectively.

The grand total to the FDIC (::cough:: taxpayers)  for these two? $100.7 million. A small number, if you consider a small number to be more money than most of us will ever see in our lives. Hope that puts that into perspective.

The FDIC said that the current crisis will probably cost the fund $65 billion by 2013. Or in other words, less than AIG’s bailout.

To finish off tonight, the government did announce that it will take control of 36% of Citigroup. That is 14% + 1 share of nationalization the good ol fashioned way. Now we know what government and private equity has in common.

We all know what that means. In a few hours the FDIC will release the names of 1 or more banks that probably failed this weekend. The usual hoopla about customers will continue to be able to use their debit cards over the weekend, and that the bank(s) will be showing a new name come Monday.

This week was looking somewhat positive, then today the banking sector sank, and quickly. Once again a mad rush to sell the news. Citigroup shareholders have a legitimate concern with having their shares diluted, although it shows how few people really do have a one track mind. The move to other banks shows the point that the market still has a lot of fearful speculators, trying to guess the next one to tank.

We’ll be finding out over the next few hours which banks will be standing with flags half mast in the morning.