American Southern Bank of Kennesaw Fails - Another Georgia Bank Shut Down by Feds!

This is GOOD NEWS. 

The FDIC could have arranged for the bank to get a pot full of our tax money and stay open. 

Jim:

The local banks that played the development real estate game are in trouble. The banks that held their development portfolio, with learned prudence from the 80's debatical, are getting by.

New Jersey didn't see the wild speculation that Atanta area did. How about Nevada, Florida, California and Arizona, are their banks just as bad?

Richard

Not very encouraging signs. We have a few in question but not taken over yet. For some reason they are limitig the type loans they can do. But if all the local banks go under then we're stuck with the big bailout banks.

FDIC closed 4 banks on Friday.

"Heritage Bank, Farmington Hills, MI" , "American Southern Bank, Kennesaw, GA" ,"First Bank of Beverly Hills, Calabasas, CA" and "First Bank of Idaho, Ketchum, ID"

Till now 29 banks have failed this year and 54 from 2008.

Check the list of all the failed banks at :
http://portalseven.com/Failed-Banks-2009

And on google map see where the banks are failing at :
http://portalseven.com/finance/Failed_Banks_Map_2009.jsp

Some statistics about the bank failures :

American Southern Bank, Kennesaw, GA:
# 26th bank to fail this year in USA
# First bank from Michigan to fail this year and 2nd since 2008
# Has $112.3 million in assets and $104.3 million in deposits

Heritage bank, Farmington Hills, MI :
# 27th bank to fail this year in USA
# 5th bank from Georgia to fail this year and 10th since 2008
# Has $184.6 million in assets and $151.7 million in deposits
# Maximum banks failed in Georgia since 2008


First Bank of Beverly Hills, Calabasas, CA
# 28th bank to fail this year in USA
# 4th bank from California to fail this year and 9th since 2008
# Has $1.5 billion in assets and $1.0 billion million in deposits

First Bank of Idaho, Ketchum, ID
# 29th bank to fail this year in USA
# 1st bank from Idaho to fail since 2008
# Has $374 million in assets and $488 million in deposits


Check the layoffs happening at :
http://portalseven.com/Layoffs

Jim I know this doesn't help but capitalism needs failure to get stronger.  My sister works at a local bank that took TARP money.  Their earnings are hurting right now.  She doesn't seem worried about her job.  I hope she is correct.

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate  Lenn I think either way we lose.  Did you see the loss to the failed credit union yesterday?  The credit union had approximately $1.6 billion in assets over 200,000 members.  It all will add up one place or another.

What it points to is a total lack of any government regulation or oversight.

Richard Stabile Bergen County New Homes Builder Realtor (REMAX real estate associates)  I think this a lot worse than it seems.  Local lenders were very big into local developement, adn have yet to tak ethe it on the chin from bad commercia loans etc...there are a lot of other storms on the horizon.

Charles Stallions Real Estate 800-309-3414 Pensacola, Fl.   Charles you raise some very valid points.  The  scary issue is there is no coverage an all the trillions of dollars for the local banks.  They do not come under the TRAP funds.

Pravin - Very well done!  I love the cluster map of failed banks!