First Priority Bank was shut down by the Feds this weekend. FDIC insured customers will have to go to Suntrust Bank of Atlanta now. This is #8 on the US Bank Failure list.

The latest victim of the US financial system crisis had $259 million in assets and 6 branch offices. When we held our “Bankruptcy Cycle” conference call in mid July, this was one of the main points. We are in the early innings of the cycle here, not the late ones (see chart below).

Keep your eyes on your money – cash is king.