FT.com / In depth - FDIC warns four US banks over liquidity: "Losses on mortages and other loans have helped bring down eight US banks this year, including one small Florida institution on Friday. Last month, Indymac, a California lender with $32bn in assets, became one of the largest banks to go under in US history. It filed for Chapter 7 bankruptcy protection on Friday.
The banks receiving cease-and-desist orders in June were MetroPacific Bank in Irvine, California; Bank Haven in Haven, Kansas; Clarkston State Bank in Clarkston, Michigan; and Hastings State Bank in Hastings, Nebraska."
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Eight failures so far this year. The big Indymac failure last year. Four more just warned for lack of liquidity, i.e., not enough cash. As I understand it, when the FDIC decides to close a bank they just show up on Friday afternoon without notice and take over. That way the depositors can't rush to the bank to get their money out. So who knows what nasty surprises are on the horizon?
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