Cost Of Kansas City-Area Bank Failures Exceeds Estimate

Photo by Nicole Lunger
Photo by Nicole Lunger

Eleven bank failures in the Kansas City area did $1.01 billion in damage to the Federal Deposit Insurance Corp.’s Deposit Insurance Fund from 2008 to 2012. That’s 11.3 percent, or $102.4 million, more than the original loss estimates the FDIC published at the time the banks were closed. The Kansas City regional chairman for Simmons First National Bank, which acquired two of the 11 failed banks in the metro area, said collecting on the acquired loans is like trying to hit a constantly moving target because some loans that are performing well can run into problems later.

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