August 13, 2010 – Despite a nationwide drop in real estate values and all time high rates of mortgage defaults and foreclosures, 25 States have not had a banking failure in 2010. States that would seem to be obvious candidates for a large number of bank failures have actually experienced a small number of failures. […]
Archives for August 2010
Dodd-Frank Financial Regs Could Cripple Lending
August 13, 2010 By Leave a Comment
August 13, 2010 – As the scope of the recently passed Dodd-Frank Act is assessed, many are convinced that the massive new regulatory burdens imposed by the new bill could cripple bank lending and restrain economic growth. Despite the good intentions of Congress, the unintended consequences of a massively complex and ambiguous financial reform bill […]
Bank Regulators Perplexed On How To Implement New Financial Regulations
August 13, 2010 By 1 Comment
August 13, 2010 – Congress quickly passed the massive 2,300 page Dodd-Frank Act which will profoundly reshape financial markets for years to come. Numerous federal regulators now have the immense job of writing hundreds of new regulations to enforce the bill’s sweeping mandates. Implementing and complying with the coming tidal wave of new regulations is […]
FDIC Creates New Divisions For Large Bank Failures And Consumer Protection
August 12, 2010 By Leave a Comment
To order to carry out its responsibilities under the recently passed Dodd-Frank Wall Street Reform and Consumer Protection Act, the FDIC announced the creation of a new Office of Complex Financial Institutions (CFI) and Division of Depositor and Consumer Protection (DCP). The Dodd-Frank Act gave the FDIC authority to implement orderly liquidation of institutions designated […]
Are Retained Asset Accounts At Insurance Companies FDIC Insured?
August 11, 2010 By Leave a Comment
August 12, 2010 – The FDIC warned the insurance industry to properly disclose to consumers that Retained Asset Accounts (RAAs) are generally not insured by the FDIC Deposit Insurance Fund. Reacting to reports in the media that many customers believe that RAAs are FDIC insured, the FDIC sent a letter to the National Association of […]
Mortgage Jobs Disappear As Rates Hit All Time Lows
August 6, 2010 By 2 Comments
In what can only be described as cruel irony, the number of jobs in the mortgage industry continue to disappear as rates hit all time lows. Traditionally, all time lows in mortgage rates have resulted in a refinance boom, increased hiring by mortgage companies and hefty paychecks for mortgage loan originators. This time, things are […]
Counterfeit Cashier’s Checks Continue To Flood The Banking System
August 6, 2010 By 1 Comment
Don’t Be A Victim Of Financial Fraud Involving Cashier’s Checks The increasing number of counterfeit cashier’s checks flooding the country continues to cause major problems for both banks and consumers. The FDIC is routinely issuing special alerts on 15 to 40 banks per month that report counterfeit checks bearing their name. Counterfeit cashier’s checks represent […]
Ravenswood Bank of Chicago Closed By State Of Illinois
August 6, 2010 By 4 Comments
August 6, 2010 – Ravenswood Bank, Chicago, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation – Division of Banking. The FDIC was appointed as receiver and entered into an agreement with Northbrook Bank and Trust Company, Northbrook, Illinois, to take over the failed bank. All deposits of failed Ravenswood Bank […]
FDIC Sells Mortgage Backed Bonds – Is A Taxpayer Bailout Next?
August 1, 2010 By Leave a Comment
July 30, 2010 – The FDIC today raised $400 million by selling bonds backed by performing residential mortgages. The mortgages are part of $39 billion in assets acquired by the FDIC from failed banks (see FDIC’s Mountain Of Failed Bank Assets Grow). The securities are guaranteed by the FDIC and were sold at a coupon […]