One of the last local banks seized by FDIC

Butte Community Bank, with several branches here in Chico and Butte County, was seized yesterday (August 20th) by the FDIC and immediately shut its doors. The local bank will reopen as Rabobank, based out of El Central, California, on Monday. To me, this is sad news. Butte Community Bank was one of the last local banks we had around here. Now it's going to be taken over by a larger, regional bank. I don't think we have any local banks here now. There's Tri-Counties Bank, but they are more regional, with locations from Redding down to Sacramento. It's a troubling trend, with Butte Community Bank, along with a bank in Stockton yesterday, bringing the number of failed banks in 2010 to 116. This is reminiscent of the Great Depression. I'm glad we now have the FDIC to insure people's bank accounts; if not, millions of people would be out millions of dollars. Pretty scary to think about: one day, without warning, you go from having, say $3000 in your checking account, to nothing. The FDIC gives no advance notice when a bank shuts down; but, at least your money today doesn't go "Poof!" like it did 80 years ago. Still, a very sad and troubling trend.