Friday, March 11, 2011

This Week in Bank Failures

A huddle in Europe this weekend may decide the fate of Ireland and Portugal. Ireland, in desperate financial shape after bailing out its banks, is looking for a lower interest rate on its European bailout package, though it may come away with no more than vague commitments about future action. Portugal is not in any serious financial trouble at this point, but other European countries are worried about it. More specifically, European leaders are worried about what may happen to most of the countries in Europe if bond traders succeed in putting the screws to Portugal.

In the United States, two small banks failed tonight. First National Bank of Davis, in Oklahoma, and Legacy Bank in Wisconsin had one location each. The deposits and assets were transferred to nearby banks, and the offices will remain open. With these closings, there have been 25 bank failures so far this year.