Quote from schizo:
But that doesn't mean the FDIC, the failed bank and the acquiring bank had no knowledge of the matter until Friday afternoon. So why do FDIC release the news to the public only after the failed bank was acquired?
And why does FDIC move in on Friday afternoon for crying out loud? Who the hell really cares if they moved in on Monday or Wednesday?
They do it on Friday after the bank closes to avoid a run on the bank and social panic. Come Monday morning anyone who wants to can walk into the same branch, but under the new name, and do any transaction they otherwise would do had the bank not been seized. Those who take hits are those with uninsured deposits.
There have been many bank seizures of banks where I knew employees and officers. They're all kept in the dark until after the bank closes on Friday. Even when FDIC comes to town they arrive under assumed names, an assumed organization, and have necessities delivered to the bank saying "We're going to be doing some work late into the evening".
The only parties privy to what's going down are the FDIC and the assuming bank. It is highly confidential.
It takes more than a mouse click to do the "rollover" if you will. They work hard all weekend to make sure everything works Monday morning. They just can't pull it all off starting on Tuesday night and expecting to open Wednesday.
As some locals have put it, "If the financial crisis were the Titantic, community banks are the third class passengers".
Community banks are not allowed to borrow from the Fed. Only bank holding companies and still then they have to have a minimum net worth. I believe it's only the "member banks" which enjoy the priveldge of 0% Fed money where they go across the street and lend it to the Treasury at 4%. A third grader could make $5B/ quarter doing that.
We're the suckers.
Everybody now feels better... 
