The 2008 bank failures reached 25 on Friday when the Feds closed Haven Trust Bank in Georgia and Sanderson State Bank in Texas after market close.  Just a reminder, if you happen to have money in these two financial institutions, there is no reason to panic as the FDIC has insurance on all account up to 250K.

One bright spot in this news, the FDIC has already found purchasers who will re-open all branches on Monday.

With just over 2 weeks to go in the year, 25 bank failures is only 3 more than 2007.  While that is a high number, it’s not crisis mode (yet).  The rest of the economy may be…. Oh, and if you want the list of all 25 Banks that have failed this year, you can find it the the FDIC website.

Market consolidation continues.

Citigroup (C) will buy the Wachovia banking assets for $2.2 billion in an all-stock deal. Wachovia was the fourth largest bank in the United States which had about $53 billion debt and a loan portfolio worth more than $300 billion. Due to the purchase Citi will have roughly $42 billion of losses due to bad debt.

Here is the real kicker – let’s say you were a Wachovia share holder. On Friday ever share you owned would have been worth $10 but, as you woke up Monday morning, your shares would have been worth .86 per share.

Ouch.

UPDATE: Why did Wachovia need to sell so quickly?

Be cause it ran out of time. That is to say the bailout did not happen quick enough, it could not get rid of it’s bad loans, and needed to sell before it collapsed.

UPDATE: Shares of National City Pluge 52%

The stock market is wondering who is next to go and, by the looks of it, they are thinking it may be National City.

As of roughly 8:30AM central the House of Representatives began debate on the financial bailout. Roughly three hours of debate/discussion is to be had with a vote expect by noon central.

How are the markets responding? With a sharp drop at the open, the down seems to have found the bottom of the day around 10800.

Updates to come as the day moves forward.

UPDATE: 10:32 AM CENTRAL

Here is the draft of the Bailout, all 110 pages.

UPDATE: 11:05 AM CENTRAL

You can watch the House Debates at C-Span. A final vote is, indeed, expected at 12:30PM Eastern / 11:30 Central but may be later if the debates continue.

UPDATE: 11:15 AM CENTRAL

Just vote already! This is all fluff… Everyone saying how this was politics at it’s best, everyone thanking everyone else… Wait…

Ginny Brown-Waite, Republican Congresswoman, does not like this bill and does not look like she will vote in favor.

UPDATE: 11:17 AM CENTRAL

Congresswoman Marcie Kaptur, Democrate, is voicing her disapproval. She says go back to the drawing board, this is not the right bill.

UPDATE: 11:22 AM CENTRAL

Speaker of the House, Nancy Pelosi, is blaming President Bush for this financial crisis (Let’s ignore the poor lending practices).

Wow – thanks Nancy – I didn’t know that Fed Chairmen Ben Bernanke is a leading expert on the great depression.

The bill does not contain bankruptcy? I wonder what that means….Ah, she wants to help homeowners stay in their home if someone goes into bankruptcy.

UPDATE: 11:31 AM CENTRAL

The vote should be taking place but the debates continue…. Actually, Pelosi continues to slam the Bush administration, is thanking Barney Frank for all that he has done and is asking both sides to vote for the bill.

UPDATE: 11:48 AM CENTRAL

Debate still ongoing – there are a number of very unhappy Republicans suggesting that people vote no.