“As of June 19, 2009, First State Bank of Altus had total assets of $103.4 million and deposits of approximately $98.2 million. In addition assuming all of the deposits of the failed bank,
Herring Bank will purchase approximately $64.4 million in assets.
The FDIC will retain the remaining assets for later disposition.”
on paper that is 5M in equity or 5% capital, not bad for a bank. a touch low,
but they should be able to increase equity.
but notice the underlined part?
40M were shitty assets. FDIC is going to eat those. Figure it’s the same
way or worse in bigger banks, so yeah, FDIC is busted.
