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Market Summary - What a Ride, and bank failures too.

I don’t know about you, but this week has left me feeling like I just did a marathon of roller coaster rides back to back.

We will have more on the today’s action over the weekend. And we will monitor what comes out of the G7 meeting that is taking place now.

This sums up today’s action…

 This is one chart that I’m printing and hanging on my wall. This is a classic.

Oh.. we have a bank failure tonight to report:

FOR IMMEDIATE RELEASE

October 10, 2008 Media Contact:

LaJuan Williams-Dickerson

Office: 202-898-3876

Lwilliams-dickerson@fdic.gov

Main Street Bank, Northville, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC approved the assumption of all the deposits of Main Street Bank, by Monroe Bank & Trust, Monroe, Michigan.

All depositors of Main Street Bank, including any with deposits in excess of the FDIC’s insurance limits, will automatically become depositors of Monroe Bank & Trust, and they will continue to have uninterrupted access to their money. Depositors will still be insured with the new institution. Therefore, there is no need for customers to change their banking relationship to retain deposit insurance.

The failed bank’s two offices will reopen Saturday, October 11th, as branches of Monroe Bank & Trust. Over the weekend, customers of Main Street Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed.

Loan customers should continue to make their payments as usual.

Main Street Bank had total assets of $98 million in total assets and $86 million in total deposits as of October 7, 2008.

Monroe Bank & Trust has agreed to pay a total premium of 1 percent for the failed bank’s deposits. In addition, Monroe Bank & Trust will purchase approximately $16.9 million of Main Street’s assets, and have a 90-day option to purchase approximately $1.1 million in premises and fixed assets. The FDIC will retain the remaining assets for later disposition.

Customers with questions about today’s transaction or who would like more information about the failure of Main Street Bank can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/mainstreet.html, or call the FDIC toll-free at 1-866-934-8944, today until 9 p.m.; Saturday from 9 a.m. to 5 p.m.; Sunday from 12 p.m. to 5 p.m.; and thereafter from 8 a.m. to 8 p.m. All times are Eastern Daylight Time.

The FDIC estimates that the cost to its Deposit Insurance Fund will be between $33 million and $39 million. Monroe Bank & Trusts’ acquisition of all deposits was the “least costly” resolution for the FDIC’s Deposit Insurance Fund compared to all alternatives because the expected losses to uninsured depositors were fully covered by the premium paid for the failed bank’s franchise.

 

And one more:

FOR IMMEDIATE RELEASE

October 10, 2008 LaJuan Williams-Dickerson

Office: 202-898-3876

Lwilliams-dickerson@fdic.gov

Meridian Bank, Eldred, Illinois, was closed today by the Illinois

Department of Financial Professional Regulation-Division of Banking, and

the Federal Deposit Insurance Corporation (FDIC) was named receiver. To

protect the depositors, the FDIC approved the assumption of all the

deposits of Meridian Bank by National Bank, Hillsboro, Illinois.

All depositors of Meridian Bank, including any with deposits in excess

of the FDIC’s insurance limits, will automatically become depositors of

National Bank, and they will continue to have uninterrupted access to

their money. Depositors will still be insured with the new institution.

Therefore, there is no need for customers to change their banking

relationship to retain deposit insurance.

The failed bank’s four offices in Altamont, Carlyle, and Eldred will

reopen for normal hours on Saturday, October 11th and the Alton office

will reopen Tuesday, October 14th, as branches of National Bank. Over

the weekend, customers of Meridian Bank can access their money by

writing checks or using ATM or debit cards. Checks drawn on the bank

will continue to be processed. Loan customers should continue to make

their payments as usual.

Meridian Bank had total assets of $ 39.18 million in total assets and $

36.88 million in total deposits as of September 25, 2008. National Bank

will purchase approximately $7.55 million of Meridian’s assets, and did

not pay the FDIC a premium for the right to assume all of the failed

bank’s deposits. The FDIC will retain the remaining assets for later

disposition.

Customers with questions about today’s transaction or who would like

more information about the failure of Meridian Bank can visit the FDIC’s

Web site at http://www.fdic.gov/bank/individual/failed/meridian.html, or

call the FDIC toll-free at 1-877-894-4713, today until 9 p.m.; Saturday

from 9 a.m. to 5 p.m.; Sunday from 12 p.m. to 5 p.m.; and thereafter

from 8 a.m. to 8 p.m. All times are Central Time.

The FDIC estimates that the cost to its Deposit Insurance Fund will be

between $13 million and $14.5 million. National Banks’ acquisition of

all deposits was the “least costly” resolution for the FDIC’s Deposit

Insurance Fund compared to all alternatives.