You are browsing the archives of 2009 June.

FDIC 2009 Economic Landscape
The FDIC Economic Landscape Report details how the out of control lending mania created the perfect housing storm.  The largest housing bust in US history centers in four states which had the largest housing price increases and are now suffering the consequences of a boom gone bust.
The Sand States: Anatomy of a [...]

FDIC Cease and Desist Orders
The FDIC made public today a list of 20 banking institutions that were recently issued cease and desist orders from the FDIC, as follows:
FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b) (Cease-and-Desist)

First State Bank, Flagstaff, AZ; FDIC-09-171b; Issued 5/1/09
Golden Security Bank, Rosemead, CA; FDIC-09-108b; Issued 5/8/09 [...]

Small Banks Line Up For TARP Money - No End In Sight
The banking crisis may or may not be over for the nation’s largest banking institutions, but many smaller banks, desperate for capital are lining up for TARP funds.  As the recession continues and asset values backing loans continue to erode, smaller banks are finding [...]

Failed Banks:  Community Bank of West Georgia, Neighborhood Community Bank, Horizon Bank, Metro Pacific Bank and Mirae Bank

There were five more failed banks this week on June 26, 2009 as detailed below:

Community Bank of West Georgia, Villa Rica, Georgia
Neighborhood Community Bank, Newnan, Georgia
Horizon Bank, Pine City, Minnesota
MetroPacific Bank, Irvine, California
Mirae Bank, Los Angeles

2009 has now [...]

Failed Banks: Community Bank of West Georgia and Neighborhood Community Bank, 6/26/2009
Georgia continues to live up to its name as the Failed Bank Capital of the US with two more banking closures today of Community Bank of West Georgia, Villa Rica, GA and Neighborhood Community Bank, Newnan, Georgia.  For all of 2009 to date, Georgia [...]

Many More Banking Failures Likely
The FDIC will not reveal what banks are on their Problem Bank List but MSNBC has come up with a list of 294 banks that have very high troubled asset ratios of 90% or higher.  It’s probably a good bet that many of the institutions on the MSNBC list are also [...]

In a recent interview with Forbes, FDIC Chairman Sheila Bair readily acknowledged that the primary reason for banking losses and failures was due to banks taking on excessive risk in their loan portfolios.  Chairman Bair also discussed her ideas on regulatory changes that will prevent a future banking crisis, the health of the FDIC insurance [...]

TARP Funds Fail To Save Some Banks
Most of the headline news on the banking industry centers on the largest banks paying back TARP funds previously received from the US Government.  Less focus is being given to the numerous smaller banks in the country that received TARP money but apparently need additional bailout funds as mounting [...]

Failed Banks: Southern Community Bank, Cooperative Bank and First National Bank
There were three more failed banks this week on June 19 - Southern Community Bank, Fayetteville, Georgia and Cooperative Bank, Wilmington, North Carolina and First National Bank of Anthony, Anthony, Kansas.   2009 has now seen a total of 15 more failed banks than occurred for [...]

FDIC Warns On Deceptive CD Rate Offers
Due to the very low interest rate policies of the Federal Reserve, savers have been hammered into oblivion.  Short term treasury securities with a one year maturity offer rates barely above zero.  Banks are offering longer term CD rates that approach only a tiny 2% yield.  Under such circumstances, [...]