Friday Failure

Here is the latest FDIC seizure. The Community Bank (great name, huh?) of Loganville, Georgia has been taken over. This is a small four branch operation. Reuters has the details. The interesting part of the story is that this is the third Georgia bank to go down this year. That’s a reasonable percentage of the 20 banks closed so far. What gives down there?

But it wouldn’t be a good weekend without a little drama. Does Citi make it through to Monday or does it open up under someone elses banner or even the banner of the FDIC. For an interesting take on the situation read Bronte Capital’s post today. My bet is that they open for business as usual and Paulson puts a big slug of TARP money into them. Not very dramatic but I’ve personally had enough drama for one year.

Tom Lindmark

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