Squeaking by on $300k (WaPo)
Failed Banks weighing on FDIC (WSJ) The key paragraph is this: "For the 102 banks that have collapsed in the past two years, the FDIC's estimated cost averaged 25% of assets. That is up from the 19% rate between 1989 and 1995, when 747 financial institutions were closed by regulators, according to the FDIC." I wonder: Is that a weighted average? Elsewhere the writer notes that 3 of the 5 failures last Friday will cost the DIF >50% of the failed banks assets. But that's misleading. The biggest failure by far was Colonial, and the estimated losses there are 11% of assets. I also would have liked the writer to have drilled down on Joe Patten's quote, that this crisis won't cost FDIC as much as the S&L crisis. If that turns out to be true it will only be because bailouts rescued FDIC from having to deal with failed behemoths Citi and BofA.