Weekend Economists Examine (E)sc(h)atology January 24-26, 2014

[Demeter]

1. Well, that was a week that was!

Panic at how good a recovery the global economy is making sent markets across the world plunging this week. Investors are piling into Treasuries, it is said, and yields dropping.

The end of QE4ever has brought an end to the party with a bang. I'm sure there will be a whimper following at some point.


As soon as somebody posts a summary, I will bring to your attention.

Meanwhile, back at the FDIC...WE HAVE ANOTHER BANK FAILURE! Imagine that!

The Bank of Union, El Reno, Oklahoma, was closed today by the Oklahoma State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with BancFirst, Oklahoma City, Oklahoma, to assume all of the deposits of The Bank of Union. The two branches of The Bank of Union will reopen as branches of BancFirst during their normal business hours...

As of September 30, 2013, The Bank of Union had approximately $331.4 million in total assets and $328.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, BancFirst agreed to purchase approximately $225.5 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $70.0 million. Compared to other alternatives, BancFirst's acquisition was the least costly resolution for the FDIC's DIF. The Bank of Union is the second FDIC-insured institution to fail in the nation this year, and the first in Oklahoma. The last FDIC-insured institution closed in the state was First Capital Bank, Kingfisher, on June 8, 2012.