Bank Failure Friday, 2011: And We’re Off…

And so it begins:

Georgia’s Department of Banking and Finance closed Oglethorpe Bank of Brunswick. Oglethorpe Bank and its deposits will be acquired by Bank of the Ozarks, which is based in Little Rock, Ark. As of Sept. 30, Oglethorpe Bank had approximately $230.6 million in total assets and $212.7 million in total deposits.

The Federal Deposit Insurance Corp. estimated that the closure will cost the regulator’s insurance fund $80.4 million. “Compared to other alternatives, Bank of the Ozarks’ acquisition was the least costly resolution,” the agency said in a statement.

Three way tie for the lead:  Georgia, 1.  Florida, 1.  Arizona, 1.

50 weeks to go.

3 comments

  1. John Konop says:

    The positive side is the economy may grow at 3 to 4% this year which would help all. The dark clouds are commercial real-estate, inflation especially energy /food short term, interest rates long term and pension liabilities (healthcare cost being the biggest problem) creating massive defaults for counties, cities and states. Municipal bond holders may be in for a major discount and retries will feel the cut backs soon.

    The above is a major balancing act. What many do not understand is cutting taxes without paying for them creates a hidden tax increase via inflation and real wages sinking. And if we do not fix the problem we all pay eventually and the longer we put it off the tougher the medicine. Bottom-line we will see a combination of tax increases as well less services via putting off dealing with the problem.

    Chaos always creates opportunities. This time period will force us to deal with many issues we have been putting off for years.

    And in the banking industry you see winners as well as losers depending how they deal with the above issues. The winners will be well capitalized business with access to debt with a solid plan. This will be tough times for consumers and or business that do not have the above 3.

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