Not Too Big To Fail...Apparently

I am surprised at what little attention this is getting.

This was the second largest bank failure nationally and one of Colorado's largest banks with $1.5 Billion in deposits. The largest bank failure this year was in California with $1.7 Billion in deposits.

Obviously not too big to fail, along with Cape Fear Bank in Wilmington, NC, two of the 23 banks to have failed thus far in 2009. Keep in mind, 25 banks failed in 2008.

New Frontier Bank in Colorado employs approximately 250 people who will of course be unemployed as of May 8th, which is the last day customers will have to transfer or withdraw their money. It's curious that New Frontier was offering CD's at unusually high interest rates...and now becomes apparent as to why....in hopes of attracting new deposits. Guess that didn't work out so well, did it?

Cost to the FDIC: $670 Million.

Is your bank in trouble? See the link below for the 252 banks nationwide that are in trouble.


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