When Mr. Ross used that number last week, I put the CNBC video in the link-vault. It had been two weeks since the FDIC had taken over First Priority Bank. With the failure of Columbian Bank and Trust on Friday evening I think the pace is going to pick up. Mr. Ross makes the statement @ 2:20 on the video.
Here's a snippet of transcript via Clusterstock:
And that's not all. Billionaire LBO specialist Wilbur Ross thinks that, when all is said and done, up to 1,000 banks could fail::
Meanwhile, billionaire investor Wilbur Ross told "Squawk Box" that a thousand banks could fail before the financial crisis is over. "Not very big ones necessarily," he said. "But a thousand banks is going to be a lot." And the impact on the credit crunch could be severe, he added.
"Each dollar of bank equity that gets lost takes out about 12 or 13 dollars of loans so there's a tremendous magnifier effect of small changes in bank equity."
Back in April we put this in the W.L. Ross file:
Billionaire investor Wilbur Ross, who made his fortune making bold investments on distressed industries, said on Wednesday that he expects his next bet to be on banks and thrifts.
"I believe the next phase of the cycle will be the failure of depositary institutions," Ross said, speaking at a Cardozo Law School conference in New York.
He added that depositary institutions are "the next thing we will be trying to go into."
Although the biggest banks can raise money from sovereign wealth funds when they need more capital, smaller and regional banks may not have that luxury, Ross said.
"Abu Dhabi and Kuwait are very unlikely to invest in small-town savings," Ross said....MORE at Reuters
For folks keeping track, here's the list of failures to date. With the exception of IndyMac, the third largest failure ever, these have been smaller and definitely non-money center. Expect the Arizona, California, Florida and Nevada banks to be well represented going forward.
Bank Failures & Assistance
The list of Bank Failures and Assistance Transactions is updated through August 22, 2008. Please address questions on this subject to the Customer Service Hotline (telephone: 888-206-4662).
The Columbian Bank and Trust, Topeka, Kansas, with approximately $752 million in assets and approximately $622 million in deposits was closed. Citizens Bank and Trust Company, Chillicothe, Missouri has agreed to assume the non-brokered insured deposits. (PR-69-2008)
First Priority Bank, Bradenton, Florida, with approximately $259 million in assets and approximately $227 million in deposits was closed. SunTrust Bank, Atlanta, Georgia has agreed to assume the non-brokered insured deposits. (PR-65-2008)
First National Bank of Nevada, Reno, Nevada, with approximately $3.4 billion in assets was closed. Mutual of Omaha Bank, Omaha, Nebraska has agreed to assume all deposits (approximately $3.0 billion). On June 30, 2008, First National Bank of Arizona, Scottsdale, Arizona, merged with First National Bank of Nevada and was included in this action. (PR-63-2008)
First Heritage Bank N.A., Newport Beach, California, with approximately $254 million in assets was closed. Mutual of Omaha Bank, Omaha, Nebraska has agreed to assume all deposits (approximately $233 million). (PR-63-2008)
IndyMac Bank, F.S.B., Pasadena, California, with approximately $32.01 billion in assets was closed. Non-brokered insured deposits and substantially all of the assets were transferred to IndyMac Federal Bank, F.S.B., Pasadena, California. The FDIC was named Conservator. (PR-56-2008)
First Integrity Bank, National Association, Staples, Minnesota, with approximately $54.7 million in assets was closed. First International Bank and Trust, Watford City, North Dakota has agreed to assume all deposits (approximately $50.3 million). (PR-41-2008)
ANB Financial, National Association, Bentonville, Arkansas, with approximately $2.1 billion in assets was closed. Pulaski Bank and Trust Company, Little Rock, Arkansas has agreed to assume the non-brokered insured deposits (approximately $212.9 million). (PR-33-2008)
Hume Bank, Hume, Missouri, with approximately $18.7 million in assets was closed. Security Bank, Rich Hill, Missouri has agreed to assume the insured deposits (approximately $12.5 million). (PR-21-2008)
Douglass National Bank, Kansas City, Missouri, with approximately $58.5 million in assets was closed. Liberty Bank and Trust Company of New Orleans, Louisiana has agreed to assume all deposits (approximately $53.8 million). (PR-7-2008)