April 13, 2009 8:01 PM
Robert Barba and Marissa Fajt report in the American Banker:
“The Federal Deposit Insurance Corp. dusted off a tool it had not used in more than a quarter century to resolve New Frontier Bank in Greeley, Colo., which failed Friday.
After no buyer emerged for the $2 billion-asset New Frontier, the FDIC established a deposit insurance national bank — a last resort in which the Deposit Insurance Fund sidesteps a mass payout by giving the failed institution’s depositors 30 days to shop for a new bank.”
Maybe we should try something like that with Citi or B of A.
More on this topic
(What's this?)
Are Bank Stocks Such a Good Buy?
(naked capitalism, 8/17/10)
Steve Keen: Bank Profits a sign of economic sickness, not health
(naked capitalism, 8/12/10)
YOUR TEXTBOOKS LIED TO YOU – THE MONEY MULTIPLIER IS A MYTH
(THE PRAGMATIC CAPITALIST, 8/11/10)
Do you need divorce insurance?
(Canadian Business Blog, 8/20/10)
