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February 2, 2007 (FDIC)
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved the assumption of the insured deposits of Metropolitan Savings Bank, Pittsburgh, Pennsylvania, by Allegheny Valley Bank of Pittsburgh, Pittsburgh, Pennsylvania.
Metropolitan Savings, with total assets of approximately $15.8 million at the end of the third quarter 2006, was closed today by the Pennsylvania Department of Banking, and the FDIC was named receiver.
Allegheny Valley has agreed to assume approximately $12.0 million of insured deposits of the failed bank. At the time of closure, Metropolitan Savings had approximately $1.2 million in deposits in 70 accounts that potentially exceed the federal deposit insurance limit.
AntiSpin: Just a short Daily News today to report the first, and probably not the last, bank failure in several years. The FDIC tends to announce bank failures on a Friday evening when no one's paying attention.
Metropolitan Savings Bank, Pittsburgh is the smallest bank in Pittsburgh, with a mere $14 million in assets. That's considerably less than the average $25 million bonus each member of the top brass at Goldman got last year. By failing, Metropolitan becomes the first out of the gate, since June 2004, beating Coast Bank which has been on the watch list. Today the story is that Coast is, "...unlikely to fail, but with the potential for an FDIC-induced discount-price sale, it could become the first banking casualty of the housing bubble, says a well known Miami banking analyst." With assets of $51 million, Coast is still a small fry. The big fireworks are still years off.
2002 was the last big year for bank failures, with 12 banks turning turtle as the post-stock market bubble economy bottomed out. My guess is that for years after 2010 when the housing bubble bust may finally bottom we'll see a bumper crop of housing bubble collapse related bank failures. How big a year? Bigger than the early 1990s.
February 27, 1991, Dave Skidmore, Associated Press, reported in the Philadelphia Inquirer FDIC'S OPTIMISTIC VIEW: 180 BANK FAILURES THIS YEAR:
Months after the recession is over and the economy is growing again, the government will be struggling with a legacy of failed banks. Bank failures are, in the vernacular of economists, a lagging indicator. They follow, rather than lead, declines in the economy. That's significant in light of the more than 1,000 bank failures in the last six years. Those banks folded not in hard times, but in the midst of the national economy's longest peacetime expansion.
More than one thousand bank failures in six years. How soon we forget.
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