FDIC Shutters Banks in Illinois and Indiana

02/11/2012 01:34 am ET | Updated Apr 11, 2012
  • Dennis Santiago Systemic Risk and Global Stability Observer; Architect of Risk Measurement Systems

On Friday, Feb. 10, 2012 the FDIC shifted bank closure activity from the south to the center of the country this week failing Charter National Bank and Trust in Hoffman Estates, Ill. and SCB Bank of Shelbyville, Ind. SCB at $200B assets was the larger of the two and began to hemorrhage significantly in the second quarter of 2011. It will reopen as part of First Merchants Bank, National Association on Monday. Charter National Bank and Trust was down to $98M in assets as of 3Q2011 and had been living with elevated stress indications from Institutional Risk Analytics (IRA) since March of 2009. Like SCB, Charter also experienced an increase in operating loss rates beginning around the first to second quarter of 2011. Charter will reopen as part of Barrington Bank & Trust Company, National Association on Monday.

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