FDIC Friday was not a good one for two banks yesterday.
Regulators took over failed banks in NC and CO, bringing the number of failed banks dangerously close to last year's level.
New Frontier bank in Greeley, CO, is especially troublesome. The FDIC was unable to find a buyer, so everybody has to open a new bank account elsewhere. After May 8th 2009, transactions through the bank will no longer be honored.
The FDIC insurance fund took a $670 million hit.
To hear what bank failures are like, you might enjoy a story from This American Life. Chana Jaffe-Walt talks with people involved in a failure in Washington state. You hear perspectives from the FDIC, failed bank employees, and the buying bank's CEO.
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