Meet the 171 Banks for Which the Margin of Failure Is One Thousand Dollars

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At this point the majority of the population is transfixed by the biggest borrowers from the discount window. Yes, we know by now that the bulk of these were foreign banks, primarily Dexia and Depfa, but that is simply because only Bank Holding Companies, or depository institutions (and yes, last we checked Goldman deposit branches are still sorely missing), are allowed discount window access. Keep in mind that most banks were Investment Banks and not under the BHC umbrella until after the Lehman collapse. Which is why most banks only had access to the PDCF, which is how the Fed eliminated the loophole for emergency liquidity trickling down to everyone. The majority of US investment banks therefore accessed Fed rescue funding via the PDCF, of which JPMorgan and BofNY Mellon were intermediaries due to their position as the only two tri-party repo clearers and keymasters of the shadow banking mechanism. A quick glance at the PDCF confirms that all banks, pre their conversion to Bank Holdings Companies in the week following Lehman’s failure, borrowed from the Fed, if not necessarily from the Discount Window (and yes, as Bob Ivry confirmed, Goldman did borrow directly from the Discount Window on at least five occasions post its "depository status" conversion despite Gary Cohn’s perjury to the contrary even as Goldman repeatedly dipped in the PDCF both before and after Lehman’s failure, even setting the precedent of first pledging defaulted bonds as collateral before any other solvent bank). Yet what we are more concerned by is not the mega borrowings: after all, it makes sense that if you need tens of billions you will go to the Fed. We are far more concerned by the banks for whom the marginal amount of cash was smallest. Below we present the 171 banks that had to access the Discount Window for the paltry sum of $1,000.00. That’s right – these are the banks for whom the margin of failure is as low as one thousand dollars. Any readers who have cash deposited with these banks (many of whom have not yet been visited by the FDIC’s Failure Friday phenomenon), are urged to immediately remove all funds and run, Forrest, run.

The banks in question:

  • 1St Source Bk
  • Albany B&Tc Na
  • Alpha B&Tc
  • Ameriana Bk Sb
  • American Eagle Bk
  • American Nb
  • Ameristate Bk
  • Andrew Johnson Bk
  • Atlantic Coast Bk
  • Banco Popular N Amer
  • Bank Of Alpena
  • Bank Of Dudley
  • Bank Of Elmwood
  • Bank Of Fl Se
  • Bank Of Fl Sw
  • Bank Of Fl Tampa Bay
  • Bank Of Hiawassee
  • Bank Of Marin
  • Bank Of Miami Na
  • Bankeast
  • Bb&T Fncl Fsb
  • Belmont B&Tc
  • Benjamin Franklin Bk
  • Beverly B&Tc Na
  • Boone Cty Bk
  • Byron Bk
  • Capital One Bk Usa Na
  • Capital One Na
  • Cedar Rapids B&Tc
  • Centier Bk
  • Central Il Bk
  • Central St Bk
  • Chain Bridge Bk Na
  • Chesapeake Bk
  • Citizens & Farmers Bk
  • Citizens Bk
  • Citizens Cmrc Nb
  • Citizens Nb
  • Citizens St Bk
  • Clear Lake B&Tc
  • Coastal Cmrc Bk
  • Coastal Fcu
  • Columbus Cmnty Bk
  • Community B&Tc
  • Community Bk Of Tri-Cty
  • Community Cap Bk
  • Community First Bk
  • Communitysouth Bk And Tr
  • Connecticut Bk & Tr Co
  • Cornerstone Cmnty Bk
  • Csb Bk
  • Dnb First Na
  • Eaglebank
  • East Carolina Bk
  • Eastern Mi Bk
  • Elizabeth St Bk
  • Enterprise Nb Of Palm Beac
  • Enterprise Nb Of Palm Beach
  • Equitable Bk Ssb
  • Farmers St Bk
  • Fidelity Bk
  • Finance Fact
  • Finemark Nb&Tc
  • First Amer B&Tc
  • First Century Bk
  • First Century Bk Na
  • First Chatham Bk
  • First Cherokee St Bk
  • First City Bk Of Fl
  • First Cmnty Bk
  • First Dupage Bk
  • First Ga Cmnty Bk
  • First Nb Danville
  • First Nb Midwest
  • First Nb Of Brookfield
  • First Nb Of Chester Cty
  • First Nb Of Muscatine
  • First T&Sb
  • First Tr Bk
  • Firstbank Fs
  • Franklin Svg Bk
  • Frederick Cty Bk
  • Freedom Scty Bk
  • Frontier Bk
  • Gateway B&Tc
  • Gateway Bk Of Cent Fl
  • George D Warthen Bk
  • Glens Falls Nb&Tc
  • Grand B&Tc Of Fl
  • Great Eastern Bk Of Fl
  • Greeneville Fed Bk Fsb
  • Harborone Cu
  • Heritage Bk Central Il
  • Hinsdale B&Tc
  • Home Fed Bk Corp
  • Home S&Lc
  • Home Svg Bk
  • Howard Bk
  • Idaho Tr Nat Bk
  • Ing Bk Fsb
  • Integrity First Bk
  • Irwin Union Bk Fsb
  • Killbuck Svgs Bk Co
  • Kress Nb
  • La Porte Svg Bk
  • Lake Cmnty Bk
  • Lloyds Tsb Bk Plc Miami Agy
  • Main St Bk
  • Mansfield Co-Op Bk
  • Marine Bk
  • Marine Bk Springfield
  • Mcintosh St Bk
  • Merchants Bk Of Bangor
  • Meredith Village Svg Bk
  • Midcarolina Bk
  • Middleburg Bk
  • Millennium Bcpbank Na
  • Minster Bk
  • Mitsubishi Ufj Tr & Bkg Ny Br
  • Morris Bk
  • Mount Vernon Bk
  • Mountain Valley Cmnty Bk
  • Mutual Bk
  • National B&Tc Of Sycamore
  • National Bk Indianapolis
  • Nationwide Bk
  • Nbt Bk Na
  • New Frontier Bk
  • Norstates Bk
  • North Bk
  • North Shore Bk A Co-Op Bk
  • North Shore Bk Fsb
  • North Shore Cmnty B&Tc
  • Northmark Bk
  • Northpointe Bk
  • Northwest Cmnty Cu
  • Northwest Ga Bk
  • Orlando Fcu
  • Oxford B&T
  • Park Ave Bk
  • Patterson Bk
  • Peachtree Bk
  • Peoples’ Bk Arlington Heights
  • Pioneer Bk
  • Pna Bk
  • Premier Bk
  • Rainier Pacific Svg Bk
  • Red River Bk
  • River Cities Bk
  • Sandy Spring Bk
  • Security Nb Of Omaha
  • Signature Bk
  • Smartbank
  • Southwest Ga Bk
  • Statewide Bk
  • Sterling Bk
  • Strategic Cap Bk
  • Tower B&Tc
  • Traverse City St Bk
  • Treynor St Bk
  • Union Fsb
  • United B&T
  • United B&Tc Na
  • Unity Nb
  • Village B&Tc
  • Warren Bk
  • Washington Tc
  • Waterstone Bk
  • Webster Bk Na
  • Wheaton B&Tc
  • Whitesville St Bk

For those wondering what the full borrowing histogram looks like by bucket, here it is, by key distributions, with the mode between $10,000,000 and $50,000,000. And on the top side, there were 3 distinct discount window borrowings for over $50 billion, the biggest of which was for $61 billion by, surprise, AIG, and the next two were for CPFF (Commercial Paper Funding Facility) in yet another SPV shell funding scheme.

Reprinted with permission from ZeroHedge.

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