Friday is D-Day for bank seizures

Posted Aug 7th 2008 1:50PM by Latif Lewis
Filed under: Bad News, Consumer Experience, Personal Finance

I've always been a fan of another week coming to an end -- marking Friday's showing with a salutatory TGIF. It's a day that most Americans spend getting comfy for the weekend, hitting a club, taking a road trip, etc. But before you rush to the ATM to withdraw cash for your weekend rendezvous, you might want to pay close attention to whether your bank will still be in business by Monday morning.

Nearly 10 banks have failed so far this year and as financial institutions struggle with billions of dollars worth of sour mortgage portfolios, you can best believe that more failures will soon follow. And after analyzing recent collapses, a pattern seems to be developing.

Recent Bank Closures:

IndyMac Bancorp., seized on July 11 -- a Friday.
1st National Bank of Nevada and First Heritage Bank, both seized on July 25 -- another Friday
And on Aug. 1, First Priority Bank of Bradenton, Fla., seized on -- you guessed it -- a Friday.

Is it just a coincidence or are bank regulators being slick about shutting them down after the close of business Friday when the public is less likely to be watching? I've wondered about this fact and have seen others express the same concern on message boards. Or how about trying to to avoid a panic, which led to the run on IndyMac?

Whatever your pick, be forewarned. Mind your assets -- it's OK to be fashionably late for the party. Cheers!

Tags: bank failures, BankFailures, First National Bank of Nevada, First Priority Bank, FirstNationalBankOfNevada, FirstPriorityBank, Indymac, inthenews

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Reader Comments (Page 1 of 1)

8-07-2008 @ 2:37PM

David said...

Quit trying to scare people. There were too many banks trying to make big profits off of inflated home values during the housing boom and they got burned. Normally banking regulations are supposed to prevent bank 'bankruptcy,' but this didn't happen, and banks, like any other business, can go under. It is the Feds job to clean up the mess and make sure it doesn't snowball and that the fewest amount of people get hurt from this. You are yelling fire in a crowded theater, and that is not good no matter what.

8-07-2008 @ 2:47PM

UTFB said...

It's done that way to try and keep everything nice and tidy. They work all weekend so that your money will be there on monday. Who cares what the name on the door is. Go back to the Keating crises of the 70's when Mr. Soros needed a rescue. It really is better that they do it that way.

8-07-2008 @ 3:49PM

jim hamby said...

what about creditunions,,,,the ncua

8-09-2008 @ 1:40AM

Delta said...

Yelling "fire" in a crowded theater is totally inappropriate....unless...um...the theater is on fire?....burn baby burn would be more appropriate in your world David?

8-14-2008 @ 1:52PM

Joanie said...

PEOPLE DO YOUR HOMEWORK.....
ITS NOT ABOUT WHAT WEVE BEEN TOLD....
ITS ABOUT THE TRUTH.....

GET THE MOVIE:
THE MONEY MASTERS...( UNITED STATES NOTE vs. THE FEDERAL RESERVE NOTES)

WATCH IT... SHARE IT..... PASS IT ON.....

WHEN YOU FAIL TO PLAN... YOU ARE PLANNING TO FAIL..

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