MORTGAGE LOAN COMPLIANCE®

The Federal Deposit Insurance Corp. (FDIC) has been appointed receiver of First Bank of Kansas City, based in Kansas City, Missouri.

First Bank had a total of $16 million in assets and $15 million in deposits as of June 30, 2009.

The failure of First Bank of Kansas City is expected to cost the already cash strapped FDIC's deposit insurance fund an estimated $6 million. The insurance fund has been so depleted by the epidemic of collapsing banks that some analysts believe it could sink into the red by the end of this year.

As of the end of June the fund fell 20 percent to $10.4 billion, the FDIC reported Thursday.

Sheila Bair, FDIC Chairman, said there were no immediate plans to borrow money from the government to replenish the insurance fund by tapping the agency's $500 billion credit line with the Treasury. The FDIC may, however, impose an additional fee on U.S. banks this year to bolster the fund, atop the estimated $5.6 billion from a new emergency premium that took effect June 30.

Today the FDIC said First Bank of Kansas City deposits will be assumed by Great American Bank based in De Soto, Kan. Its sole branch will reopen Saturday as a branch of Great American Bank.

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