THE BIG FAIL

tate regulators shut down seven regional banks Friday, the Federal Deposit Insurance Corporation said, bringing the total number of banks to fail in the United States to 64 this year.
Six of the banks that closed were subsidiaries of one larger bank, the Security Bank Corporation, based out of Macon, Ga. So far in 2009, 16 banks have failed in Georgia, more than in any other single state.
The State Bank and Trust Company, headquartered in Pinehurst, Ga., will take over all of the deposits of the six bank subsidiaries that failed. As of March 31, the six subsidiaries had total assets of $2.8 billion and total deposits of approximately $2.4 billion.
The six failed Georgia banks had a total of 20 branches, and the branches will reopen Saturday as branches of State Bank and Trust Company.
Earlier in the evening, Waterford Village Bank, of Clarence, N.Y., was shut down, and the FDIC was named the receiver. Evans Bank, N.A., headquartered in Angola, N.Y., took over all of the deposits of the failed bank.
It makes sense,doesnt it?The smalller banks give out loans to smaller firms and lenders who are more prone to recession and stuff.So,it is easy to see that the banks were mostly small.However,this closure is costly as it would cost the FDIC $812.6 million,bringing the total cost for failed banks to $14.6 billion as compared to $17.6 billion in all of 2008.So,apparently,this is no ha-ha business.