Small Banks Fail!

I was just reading today that another bank had to close it’s doors because of the economy. The Federal Regulators had stepped in and took over the bank. The third US bank to close this year is 1st Centennial Bank, located in California. That‘s right, there have already been 3 banks that have been taken over by the U.S. Government. The reason why they take over the banks is because the U.S. Government insures all your deposits up to $100,000. This guarantee makes sure you get your money back. If we didn’t have this guarantee no one would trust banks and the world would stop turning. Anyway, the FDIC stated that 1st Centennial’s insured deposits have been taken over by First California Bank. So that means the 6 banks of 1st Centennial’s will become First California Bank. Which is good for us tax payers, it lessons the blow we take on insuring the money.