An interesting 9 bagger for the FDIC

Firday's 9 bank failures represent the largest number of closings in one week during the current banking crisis. However, all 9 banks were owned by FBOP a multi-bank holding company and all were purchased by US Bancorp.

Below is the updated under capitalized bank list with new failures in orange, and prior weeks failures in red.

Note that only 4 of the 9 banks that failed this week were under capitalized. This has to do with the fact that bank holding company (FBOP) was under capitalized. The Federal Deposit Insurance Act contains provisions that all bank subsidiaries of a multibank holding company are financially responsible for the costs of resolving the failure of any of the other subsidiaries.

Credit Philip van Doorn of The Street.com