SunTrust acquires 8th U.S. bank to fail this year

[Pale Blue Dot]

Source: Reuters

WASHINGTON (Reuters) - SunTrust Bank (STI.N: Quote, Profile, Research, Stock Buzz) has acquired Florida-based First Priority Bank, the eighth U.S. bank to fail this year as financial institutions grapple with a weak economy and a credit crisis precipitated by falling home prices.

The Federal Deposit Insurance Corp said on Friday that Florida regulators closed the bank, which had $259 million in assets and $227 million in deposits. The FDIC was named receiver.

The cost of the failure to the federal insurance fund is estimated to be $72 million, the FDIC said.

Read more: http://www.reuters.com/article/marketsNews/idUSN0136691620080801

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We are currently on a pace not seen since the aftermath of 9/11, and it's only expected to get worse.

[indepat]

1. And when mountains of loans which were good when made go bad, the leaking dam is likely to

burst. :P

[TroubleMan]

2. If Suntrust is acquiring it, then why is the FDIC shelling out $72 million?

Don't they have to cover for the loss, or are they paying the government to acquire the bank?

[L0oniX]

3. SunTrust is my bank. They are doing very well. Money market is paying 3 %