You are browsing the archives of 2009 May.

Safety First For Savings
The highest rate certificates of deposit (CD) are usually offered by banks that may be on the FDIC Problem Bank List. A troubled bank usually has difficulty attracting deposits due to the risk of a banking failure and is therefore forced to offer a higher CD rate to attract funds - [...]

Quarterly Banking Profile, March 31, 2009
On May 27, 2009, the FDIC released their Quarterly Banking Profile for the First Quarter of 2009.
Highlights of the FDIC report include the following:

Banks reported earnings in the four quarter 61% lower than a year ago, earning a net profit of $7.6 billion.  This was a major recovery from the [...]

FDIC Quarterly Banking Profile 3/31/2009
The FDIC latest Quarterly Banking Profile, released today for the quarter ending March 31, 2009, showed another increase in the number of problem banks and a further large decrease in the FDIC Deposit Insurance Fund (DIF).  As of the latest quarter, the number of problem banks increased to 305 with $220 [...]

FDIC Imposes Special Assessment To Increase DIF
The FDIC had previously publicly acknowledged that the FDIC Deposit Insurance Fund (DIF) which protects depositors at failed banks had fallen to a dangerouly low level.
The FDIC believes that it is important that the fund not decline to a level that could undermine public confidence in federal deposit insurance. [...]

FDIC Deposit Insurance Increase Extended
The FDIC announced on May 21, 2009 that the temporary increase in deposit insurance has been extended.
On May 20, 2009, President Barack Obama signed the Helping Families Save Their Homes Act, which extends the temporary increase in the standard maximum deposit insurance amount (SMDIA) to $250,000 per depositor through December 31, [...]

Brokered Deposits Keep Problem Banks Alive
Citizens National Bank, Macomb, Illinois, was the latest failed bank on May 22, 2009.   One eye-catching statistic on this bank failure was the stunning percentage of Citizens assets represented by brokered deposits.   Of total deposits of $400 million, a whopping 50% ($200 million) represented brokered deposits.
Many problem banks [...]

Failed Banks:  Citizens National Bank and Strategic Capital Bank
There were two more failed banks this week on May 22 - Citizens National Bank, Macomb, IL and Strategic Capital Bank, Champaign, IL.  This bring the total number of bank failures for the week to 3 with the closing of BankUnited, FSB on May 21.   2009 has [...]

Banks And Financial Firms Say No To FDIC Temporary Loan Guarantee Program (TLGP)
Since March, many banks and financial firms have seen the value of their stocks soar as investors’ perception of the overall health of the banking industry improved.  Based on the better equity market environment, many banks were able to raise private capital without [...]

Largest Banking Failure of 2009
The failure of BankUnited, FSB is the largest banking collapse of 2009 and marks the 34th FDIC insured bank to be added to the Failed Bank List.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $4.9 billion, leaving the DIF with a balance of only approximately [...]

Failed Banks: BankUnited, FSB
There was one more failed bank this week on May 21 - BankUnited, FSB, Coral Gables, FL.  2009 has now seen a total of 9 more failed banks than occurred for all of 2008.  The FDIC closure of BankUnited brings total banking failures for 2009 to 34 banks.  The FDIC estimates that [...]