FDIC closes 8 banks on Friday, August 20th. 118 banks for the year

It appears that the FDIC's sultry "Dog Days of Summer" Friday hours have come to a sreeching halt. The FDIC closed one bank per Friday during the intial two weeks of August (both in IL). Well, the dogs were howling on August 20th.

The fine folks at the FDIC worked late on Friday as they closed another 8 banks with an estimated cost to the Deposit Insurance Fund (DIF) of $478.5 million. Four of the eight closed banks occurred in CA which brings their 2010 total to ten banks. The FDIC closed 14 CA banks in 2009.

The Land of Lincoln remains in 2nd place for 2010 with 15 bank closings year to date including Shorebank (Hillary Clinton's and Obama's favorite) that was operating on life support until August 20th when the FDIC pulled the plug. The FDIC closed 21 IL banks in 2009.

The Sunshine State is a favorite of the FDIC as 22 Florida banks have been closed in 2010 already surpassing the 14 banks closed in 2009.

Grandpa's top bloated asset valuation

Shorebank

FDIC Press Release: "As of June 30, 2010, ShoreBank had approximately $2.16 billion in total assets and $1.54 billion in total deposits." Estimated cost to the FDIC Deposit Insurance Fund (DIF) is $367.7 million. REALITY: Shorebank's "real asset value" is $1.172 billion versus $2.16 or 54% of what the bank stated. The math: $1.54 billion in total deposits minus $367.7 million hit to DIF divided by $2.16 billion equals 54%.

Yes, Mark-To-Model accounting is a bankers godsend. Special recognition to congressional members with the Grand Poobah award going to Paul Kanjorski for threatening FASB if they did not afford the banking industry with the change from Mark-to-Market.

Hillary Clinton's 2008 Public Service Announcement for ShoreBank..."Let's change the world".