You probably did not hear that there was yet another bank failure this week.

The Fed closed down Ameribank a 102-year-old West Virginia bank on Friday. Ameribank, founded in January 1906 and had $102 million in deposits and assets of $115 million as of June 30 of this year. What is interesting that in 1999 Ameribank assumed $135 million of one of the largest bank failures of the 1990s, First National Bank of Keystone. The Feds sold all deposits to two other banks Pioneer Community Bank Inc. of Laeger, W.V. and The Citizens Savings Bank of Martins Ferry, Ohio. Both banks also will purchase about $23 million in Ameribank assets. The banks branches will reopen next week under their new guidance..

The closure of Ameribank Inc. was the 12th U.S. bank failure yet this year,. This is another example of the nation's worst banking crisis in recent times. It is estimated that the cost to the FDIC's deposit-insurance fund is $42 million The FDIC last month raised to 117 the number of banks it has identified that are in danger of failing, the largest number since mid-2003 and up from 90 at the end of the first quarter. Even though one might say this was a small amount.

Multiply this small amount times 117!

As well it is easy to assume that some of these 117 banks might cost the Fed more than $42 million dollars.

All one has to take into account the largest failure of the year so far is Pasadena, Calif.-based IndyMac Bank, taken down by regulators July 11 cost the Fed (Us) approx $10 billion dollars.



You do the math…
How many more banks will be failing?

How safe is your money?



Andrew Abraham

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