During the Depression, banks failed in rapid succession when the panic hit. So the government created the FDIC--you know the drill. When the FDIC shows up and shuts down a failed bank, it should be shocking news. In the new economy, it really isn't unexpected, even when it's a small town bank:
Federal regulators today [May 30, 2008] shut down a small Minnesota bank called First Integrity, saying unsafe practices had weakened its financial condition.
The Federal Deposit Insurance Corp. was appointed as receiver of First Integrity National Association of Staples, which had $54.7 million in assets and $50.3 million in deposits as of March 31.
The FDIC said all the bank's deposits will be assumed by First International Bank and Trust of Watford City, N.D. Its two offices will reopen Saturday as branches of First International. Depositors of First Integrity will continue to have full access to their deposits, the agency said.
It was the fourth failure this year of an FDIC-insured bank — following two small Missouri institutions, Hume Bank and Douglass National Bank, and ANB Financial National Association of Bentonville, Ark., which had about $2.1 billion in assets.
So this shouldn't have been all that jarring of a shock, right?
Check out that logo again:
Yep--for what it's worth, a small town bank that SURVIVED the Great Depression just failed.
--WS
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