Banking: FDIC liabilities approach USD30,000 million this year
With three more banks being closed immediately before the weekend, FDIC's estimates of liability for this year have clocked up a massive USD29, 607 million.
Just two banks closed on Friday, cost an estimated USD959 million.
Both of them, Orion and Century of Florida have had their branches transferred to Louisiana bank IBERIABANK.
IBERIABANK has paid a premium of 1.5% on the deposits it has taken over: in recent weeks, premiums have been rare - and 1.5% is much higher than most of the premiums that have been paid.
But even so, the costs that the industry is expected to bear are substantial.
Both Orion and Century were typical small-town banks.
Orion was known to be in trouble: it was a privately owned bank that was disciplined in 2008 for weak systems and controls.
Then in September this year, it was served with a "cease and desist" order which basically told it to stop mismanaging itself and to take steps to comply with the matters outstanding from the 2008 order.
On 23rd October, FDIC shut down Partners Bank, also of Naples and also subject to a Cease and Desist order.
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