Defaulting banks - where will it stop?

[Peter Lemkin]

Colonial Bank [one of our largest] closed Friday. Predictions of over 100 more banks to go under in the next year.....:vollkommenauf: [Now that I think about it, when as a child I kept my mony in a large jar I was probably on the right track...]

From a comment on Ticker Forum:
"BB&T to acquire Colonial... Colonial unable to survive because of a Criminal Probe."

WTF kinda statement is that?

That's like stating the Mafia is going into Italian Restaurant Biz, due to a criminal probe into RICO, Racketeering, Extortion, and Murder.
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Late Friday, the FDIC announced four other banks had been closed: Community Bank of Las Vegas and its Arizona subsidiary, Community Bank of Arizona; Union Bank, Gilbert, Ariz; and Dwelling House Savings and Loan, Pittsburgh.

The Colonial BancGroup deal will knock roughly $2.8 billion off a pool of money, known as the Deposit Insurance Fund, which the FDIC maintains to guarantee bank customer deposits.

BB&T (BBT 28.63, +0.40, +1.42%) agreed to assume all of
Colonial's deposits, which totaled about $20 billion at the end of June, the FDIC said. Depositors of Colonial will automatically become depositors of BB&T and customers can continue accessing their money by writing checks or using ATMs and debit cards, the regulator stressed.

Colonial had $25 billion in assets at the end of June. That makes it the largest bank failure this year, exceeding the collapse of Florida's BankUnited Financial (BKUNQ 0.30, -0.01, -1.64%) , which
had less than $13 billion in assets.

BB&T agreed to buy about $22 billion of Colonial's assets. The FDIC said it will hold on to the rest - about $3 billion worth - and will try to sell them later.