Thread: FDIC reports second bank failure of 2008

FDIC reports second bank failure of 2008

U.S., Missouri close Hume Bank
By Robert Schroeder, MarketWatch
Last update: 5:35 p.m. EST March 7,

WASHINGTON (MarketWatch) -- A second bank has failed this year, the Federal Deposit Insurance Corp. said Friday. The FDIC and the Commissioner of Missouri's Division of Finance closed Hume Bank in Hume, Mo., on Friday, the federal banking regulator announced.

It was the second bank to fail this year, the FDIC said. The first was Douglass National Bank in Kansas City, Mo., on Jan. 25.
The FDIC didn't give a reason for the failure.

Security Bank of Rich Hill, Mo., will assume Hume Bank's insured deposits. The failed bank's sole office will open Monday as a branch of Security Bank.

As of Dec. 31, Hume Bank had assets of $18.7 million and total deposits of $13.6 million. Security Bank agreed to assume $12.5 million of the failed bank's insured deposits for a premium of 4.26%, the FDIC said.
Robert Schroeder is a reporter for MarketWatch in Washington.

http://www.marketwatch.com/news/story/f ... D#comments

Comments
There are 10 comments

(oldest to newest)
ggbiw 2 days ago

It's starting to close banks now. Dow 10000 in 6 months. GGBIW
Reply to ggbiw

an-observer 2 days ago
Abuse Yep, the Bush II Administration has been good for the U.S. in every area.
(Please note sarcasm)
Reply to an-observer

ArmchairQB 2 days ago
Abuse "Hume Bank had assets of $18.7 million"

LOL
Reply to ArmchairQB

paulrichjr 2 days ago
Yea it is obvious that Bush is responsible for a bank failing. I guess it is his fault that all these mortgage companies are going out of business also? You think maybe some of these companies should be held responsible for bad business decisions?

Businesses fail...Recessions happen and opportunities arise from these corrections. The real estate bubble is no different than the bubble that started and burst under Clinton - tech bubble...the market lost over 40% after that bubble....

While I am a Republican I don't blame every market hiccup on democrats in power. One could say though that this stuff didn't happen until the democrats took over the senate and the house...Yea that's it...Nancy Pelosi did it...(Please note sarcasm)

JPFBBE4 2 days ago
I tell you, no group has ever been better at spin than the neo-cons. To say that Bush and the neo-cons have had nothing to do with the coming recession is to be either a fool, or a non-truth teller (I can't bring myself to use that L word). Record defects to keep the feds hand tied, no energy policy meaning record oil/gas/energy prices and inflation, billions spend on a war for oil and to get money to the military industrial complex (remember who coined that word and told people to beware, a true conservative honorable Republican, Ike), and..well why go on. True conservatives are ashamed of this bunch. It is only a bank failure. And who pays for that, the tax payers. And who pays the most, the middle class tax payers. I'm sure the rich have lots of passbook saving accounts that they put some in every payday.
Reply to JPFBBE4

Reply to paulrichjr

Ebby 2 days ago
Maybe stupid people shouldn't be allowed to take out mortgages except for fixed rate loans.
Reply to Ebby

Ebby 2 days ago 0
Maybe m***** shouldn't take out second and third lien loans on their house, including second lien mortgages to pay the down-payment. Maybe people shouldn't speculate on houses and purchase second homes and vacation properties when they don't have sufficient assets and income to live if something happens.

Suffice to say, I believe individuals are equally responsible.

I guess my comments don't fit into the blame "the Man" and blame corporations, who cares if people act like children.
Reply to Ebby

LossAngeles 2 days ago
Abuse Ya what's a bank failure or two among friends? I've been steaming after I read the fed's decision to inject another 120 bill into our system today. Now I know why they are.
Reply to LossAngeles

SavCD 2 days ago
The radical shifts in the Fed funds rate (and indirectly prime) canot be offset by cost decreases for deposits. This is going to be a second cross to bear for the banks this quarter. If rates are "slammed back up", the less sophisticated banks will hit with a wave of losses on their bond portfolios since most do not use TIPS.
Reply to SavCD

pipefitter 16 hours ago
Government interference in the marketplace and funny money has caused all our financial problems and will continue to do so until the whole system collapses. Doesn't anybody read history?
Reply to pipefitter