The FDIC busied itself seizing seven banks after the close of business this fourth of July weekend. Founders Bank, Worth, IL, was the 52nd bank to be shut down by the agency in 2009 and the seventh of the night. Here is the story from Reuters:

U.S. bank regulators closed Founders Bank, of Worth, Illinois, the largest of 7 financial institutions seized on Thursday.

The Federal Deposit Insurance Corp said Founders had $962.5 million in assets and approximately $848.9 million in deposits. The failure is expected to cost the FDIC deposit insurance fund an estimated $188.5 million.

The PrivateBank and Trust Co of Chicago will assume all of the deposits of Founders Bank.

For more information, visit the FDIC webpage for Founders Bank.

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The FDIC busied itself this holiday weekend by seizing seven banks after the close of business on Thursday. Millennium State Bank of Texas marked the 51st bank to be shut down by the agency in 2009. Here is the story from Bizjournals.

The Texas Department of Banking on Thursday closed Dallas-based Millennium State Bank of Texas, the first bank failure in Texas this year and the first in the Dallas area in more than a decade.

The six-year-old bank had one office in Dallas on Webb Chapel Road near Interstate 635.

Irving-based State Bank of Texas has acquired essentially all the assets of Millennium, according to the Federal Deposit Insurance Corp.

Seven groups put in bids for Millennium, according to the FDIC.

All depositors of Millennium State Bank will have access to their funds over the July Fourth weekend, according to the FDIC. On Monday July 6, they will automatically become depositors of State Bank of Texas.

“From a customer perspective, they woun’t see any disruption in service,” said Marvin Payne, an FDIC spokesman.

FDIC and Texas Banking Department staffers are working through the holiday weekend closing out the books of Millennium State Bank and integrating them into State Bank of Texas.

As of June 30, Millennium had $118 million in total assets and $115 million in deposits.

State Bank of Texas has $588 million in assets. Millennium’s Northwest Dallas office will be its fourth branch.

But that won’t be for long. State Bank of Texas is selling its headquarters location on State Highway 183 to the Texas Department of Transportation for planned widening of that freeway, said Chan Patel is the president and CEO of State Bank of Texas.

Millennium was started by a group of investors including businessman George Gouldsby and bankers J.D. Sibilsky and Clyde Hensley. Sibilsky once ran Small Business Administration lending for Comerica Bank. Hensley was chief lending officer at Dallas’ Eagle National Bank, which was acquired by Houston-based Sterling Bank in September 2002.

Millennium first focused on small-business lending and owner-occupied real estate loans.

Millennium was profitable in 2005, but has produced losses ever since.

Millennium tapped Don Flatt to be its president in spring 2008. At the time, board chairman Gouldsby said the bank should have a wider range of offerings.

“You have to do a lot of things and do a lot of things well to make money for yourself and your investors,” he said in April 2008.

Millennium is one of seven banks closed on Thursday. Thus far this year, the 52 banks have failed this year nationwide. In all of 2008, 26 banks failed nationwide.

For more information, visit the official FDIC webpage for Millennium State Bank.

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The FDIC busied itself this holiday weekend by seizing seven banks after the close of business on Thursday. The First National Bank of Danville, Danville, IL, marked the 50th bank to be shut down by the agency in 2009. Here is the story from TribStar:

The FDIC busied itself this holiday weekend by seizing seven banks after the close of business on Thursday. Elizabeth State Bank became the 49th bank to be shut down by the agency in 2009. From theofficial FDIC press release:

The Elizabeth State Bank, Elizabeth, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Galena State Bank and Trust, Galena, Illinois, to assume all of the deposits of The Elizabeth State Bank.

Visit the official FDIC webpage for more information.

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The FDIC busied itself this holiday weekend by seizing seven banks after the close of business on Thursday. The Rock River Bank, Oregon, IL, became the 48th bank to be shut down by the agency in 2009. Here is the story from Marketwatch:

Rock River Bank of Oregon, Ill. became the 48th bank failure of 2009, and the ninth Illinois bank failure of the year, according to the Federal Deposit Insurance Corp. late Thursday. Harvard State Bank of Harvard, Ill. will assume the deposits and purchase about $72.9 million of assets. As of April 30, Rock River Bank had total assets of $77 million and total deposits of about $75.8 million. Rock River also marks the 73rd bank to fail since the beginning of the recession.

Visit the official FDIC webpage for more information.

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The FDIC busied itself this holiday weekend by seizing seven banks after the close of business on Thursday. The John Warner Bank, Clinton, IL, became the 46th bank to be shut down by the agency in 2009. Here is the story from Bloomberg:

John Warner Bank of Clinton, Illinois, was closed by state regulators, pushing the toll of failed lenders to 46 this year as the worst financial crisis since the Great Depression fuels unemployment and foreclosures.

The bank, with $70 million in assets and $64 million in deposits, was closed today by the Illinois Department of Financial and Professional Regulation, according a statement released by the Federal Deposit Insurance Corp., which was named receiver.

“Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship,” the FDIC statement said.

Regulators this year have closed the most banks since the savings-and-loan crisis of the early 1990s as lenders struggle with mounting losses on real estate-related loans. The total for 2009 is nearly double the 25 banks shuttered in 2008.

State Bank of Lincoln, Illinois, will assume the failed bank’s deposits and about $63 million in assets, the FDIC said. The John Warner Bank’s three branches will open tomorrow as branches of State Bank of Lincoln.

Visit the official FDIC webpage for more information.

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Long, long ago, doing our best for others meant bringing ourselves into the streets, where the political machine could not touch us.  Those days of yore entailed missiles in October, a place called Vietnam, a precarious risk for defenders of the status quo and outright danger for those who challenged it.  ML King and JF Kennedy met early demises. Both were shot dead in the summer heat of American discontent, one a challenge to the civil establishment, the other an aggressor against the financial shadow government.

With American Liberty slipping into the abyss and our country dissolving before our very eyes, Lyndon Johnson not only maintained the status quo, the bloody war, the Federal Reserve, the high taxation, and the conscription, but he also managed to exponentially increase the size of the welfare state. Only Bush and Obama have come close to the terror and destruction wrought upon our nation during those times.

Now, in a world struggling to overcome the New World Order, a manufactured credit crisis provides another opportunity for both the principled and practical. At present, 247 men and women of unknown and questionable principle stand with one man of unparalleled integrity, Dr. Ron Paul, to question the fountain of corruption from which stems all American corruption, both political and financial.

Just a decade ago. Dr. Paul introduced legislation similar to HR 1207, the “Audit the Fed” bill,  and inspired exactly zero co-sponsors. Now, we have 247 congress critters to show how far we’ve come and disturbing the beast in its process of reaching for empire on its own.

The system retaliates with impunity.

When asked by Rep. John Duncan on Thursday about the fact that a majority of Congress is co-sponsoring Ron Paul’s HR 1207 bill to audit the Federal Reserve, Ben Bernanke responded:

Ben Bernanke: “My concern about the legislation is that if the GAO is auditing not only the operational aspects of the programs and the details of the programs but making judgments about our policy decisions would effectively be a takeover of policy by the Congress and a repudiation of the Federal Reserve would be highly destructive to the stability of the financial system, the dollar and our national economic situation.”

That threat is serious and severe, to deliberately ruin the economy, forcing every man, woman and child in a nation of 300 million to suffer for the sake a smitten few. Ironically it has already been carried out. It would take over $21 today to buy what $1 would get you in 1913, when this, the third US central bank, was born. 

The Second Bank of the United States was run by a genius named Nicholas Biddle, who graduated from Princeton as the class valedictorian at age 15. The bank had a twenty year charter, which Jackson refused to renew. It culminated in a failed assignation attempt by a man with ties to Biddle.

Jackson believed that his reelection was a mandate from the people to break the power of what he called “this hydra of corruption,” the Second Bank of the United States. To accomplish this, Jackson decided to withdraw government money from the bank to pay current expenses and to deposit future government revenues in selected state banks. These banks were called pet banks. Jackson appointed Roger B. Taney of Maryland as secretary of the treasury to carry out this policy after his two previous secretaries refused. 

Bank President Biddle and his congressional supporters, led by Clay and Webster, were determined to save the bank. Biddle used the bank’s money to buy political favors. In 1834 the Senate passed a resolution of censure against Jackson and refused to confirm Taney’s appointment to the Cabinet. Biddle said, “This worthy President thinks that because he has scalped Indians and imprisoned Judges he is to have his way with the bank. He is mistaken.”

Biddle began to restrict credit and call in loans from state banks. Business leaders pleaded with Jackson to approve the bank and end the crisis. However, Jackson placed the blame for the panic on the doorsteps of Biddle’s bank and advised all callers to “Go to Nicholas Biddle.” Biddle’s reply was: “All the other banks and all the other merchants may break, but the Bank of the United States shall never break.”

In this struggle for power, Biddle was doomed to defeat. Jackson rallied public opinion behind him, and Biddle was pressured into restoring credit and loans. All he had proved was that Jackson was correct in his contention that a private monopolistic bank, independent of government regulation, should not be entrusted with public finances. Jackson won his greatest political victory, and the Second Bank of the United States passed out of existence when its charter expired in 1836.

The FDIC made Mirae Bank, Los Angeles, CA it’s fifth closure of the day and 45th of 2009:

Mirae Bank of Los Angeles was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation as receiver, the FDIC announced in a press release.

To protect the depositors, the FDIC entered into a purchase and assumption agreement with Wilshire State Bank, Los Angeles to assume all of the deposits of Mirae Bank.

Visit the official FDIC web page for more information.

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