FDIC loss closing Advanta – $635.6 milli…

FDIC loss closing Advanta – $635.6 million on a bank with $1.6 billion in assets. Again, the point at which the FDIC is taking over banks is when the assets of the banks are down to about half of the amount owed to depositors – suggesting that the failure of the government and the FDIC to shut the 700 or so “zombie banks” is just increasing the size of the ultimate loss. The FDIC should be seizing banks when the assets fall below the insured deposits, not when half of all the value is gone.