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FDIC Bank Foreclosure Streak: Batting .667 on Fridays

by: Paul Kedrosky September 06, 2008    
Paul Kedrosky

Paul Kedrosky

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After a cold streak in early August where it missed closing banks two Fridays in a row, the Federal Deposit Insurance Corporation is en fuego. It has closed U.S. banks three of the last three Friday nights, including tonight's announcement that Silver State Bank (SSBX) of Henderson, NV, joins the list.

If you go all the way back to July 11th of this year, the Fed has closed banks on 6 of the last 9 Fridays. That works out to a 0.667 failed-bank batting average, which is darn respectable. Now that the FDIC has started hitting for average rather than going only for homeruns -- we haven't had another multi-billion dollar IndyMac -- I'm expecting the FDIC can keep this hitting pace up for some time.

Go guys, go.

[via FDIC]

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This article has 5 comments:

  •  
    Sep 06 08:47 AM
    Uh, uh, totally disagree - Henderson is definitely the last one on the list. Definitely. Definitely.
    Reply
  •  
    Sep 06 09:25 AM
    Paul, your article reminds me of that scene in the movie "Office Space" where the two Bobs - the restructuring consultants - lay out their theory that if you fire a worker on Friday, they are less likely to come back to the job on Monday and go postal.

    As an aside, closing a bank on Friday after trading prevents a run on the bank stock, and it gives regulators the opportunity to invade the branches and take over the operations on the weekend so that on Monday it can resume operations without disrupting depositor confidence. That's the theory, of course. We know how Office Space ended.
    Reply
  •  
    Sep 06 11:16 AM
    Heckuva job, Bairie!

    wcvarones.blogspot.com...
    Reply
  •  
    Sep 06 11:52 AM
    The streak should continue for some time.

    The more interesting question is: when will FDIC start closing multiple banks each Friday.
    Reply
  •  
    Sep 07 12:44 AM
    Closures are by appointment only. Book early. Book often.
    Reply
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