Banking Failures – 92 And Counting 2009 has now seen a total of 67 more failed banks than occurred for all of 2008.  The latest banking closures by the FDIC bring total banking failures for 2009 to 92.  The latest three failed banks on September 11, 2009 had total assets of over $8 billion and total losses to the FDIC Deposit Insurance Fund (DIF) are estimated at $2 billion. The [...]

Bidding Deadline Set For Corus – Closure Expected In September Reuters is reporting a bidding deadline for problem bank Corus Bankshares of September 3, 2009.  The disclosure of a bidding deadline followed shortly by a bank closure follows the procedure recently observed with the closing of Guaranty Financial Group last week.   The closing of Corus Bankshares will not [...]

What Are The Regulators Waiting For? Recent events at Colonial BancGroup Inc present a picture of a bank beyond any hope of financial recovery. Colonial has been under FDIC and Alabama Banking Department oversight since June when it was obvious that Colonial could not survive without additional capital.  A possible merger or sale has been explored by Colonial without success. Colonial [...]

Will The FDIC Finally Shutdown Corus? Will today be the end of the line for Corus Bankshares?  The financial difficulties at Corus have been well known and documented for some time now.  Corus’s own management as well as their independent accountants have admitted that there is little reason to believe that Corus can survive, given the extreme deterioration in its loan portfolio [...]

FDIC Issues Rules For Less Than Well Capitalized Banks The FDIC has an internal list of 305 Problem Banks which they do not make public.  In general, banks included on the list have series deficiencies with their finances, operations, or management that threaten their continued solvency. Once a bank is included on the list, they are subject to closer regulatory scrutiny. In addition, [...]

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 remain [...]

Corus Management Gives Bleak Assessment The deepening financial difficulties at Corus Bankshares were highlighted in the company’s latest Form 10-Q filed with the SEC today.   Corus is required by banking regulators to develop a plan to achieve and maintain minimum regulatory capital levels, but today’s 10-Q filing  provided little reason to believe that Corus would [...]

Corus Bankshares Admits Dim Future Since the FDIC keeps its Problem Bank List secret, we cannot know for sure if Corus Bankshares is listed as a Problem Bank.   Based on recent Corus financial disclosures, however, it appears certain that Corus will soon be on the very public Failed Bank List. Corus has been having major financial difficulties for some time now and the real mystery [...]