What a Collapsed Banking System Looks Like

In the 1930’s the collapse of the banking system propelled the world into an economic collapse.  Depositors lost their savings, confidence was shattered, companies starved for capital went out of business overnight, borrowers defaulted en masse and unemployment soared.  A collapsed banking system guarantees an instant economic depression. A mere generation later, the world is […]

NOVA Bank, Berwyn, PA, Fails – Depositors Face Losses As FDIC Fails To Find Buyer

Large depositors of NOVA Bank, Berwyn, PA, are in a panic today after state regulators closed the failed bank.  The FDIC, acting as receiver, was unable to find a buyer for NOVA Bank, and will pay off depositor accounts only up to the FDIC insurance limit of $250,000. NOVA Bank, established in 1887, had 13 […]

Bank of the Eastern Shore, Cambridge, MD, Fails – Uninsured Depositors Out Of Luck As FDIC Fails To Find Buyer

Maryland state regulators closed the Bank of the Eastern Shore, Cambridge, MD and the FDIC was appointed as receiver.  As has happened on previous occasions, the FDIC was unable to find a buyer for the failed bank, leaving uninsured depositors at risk of loss on their savings. To protect insured depositors and wind down the […]

Will The Run On Greek Banks Spread Across Europe?

With the interest rate on short term Greek government debt approaching 100%, markets are saying that default by Greece is inevitable.  Greece is expected to run out of cash within weeks and massive civil unrest may slide into anarchy as protests become increasingly violent.  The bailout by the European Union that was supposed to save […]

FDIC Warns Banks On Potential Losses By Depositors

The ultimate nightmare for a bank customer is to have uninsured funds in a failed bank.  Depositor losses at FDIC insured institutions occur more frequently than most people realize. Twice already in 2011, depositors at two failed banks have lost money on uninsured deposits.  When a bank fails, the FDIC as receiver, will typically find […]

Depositor Losses Result In Threats Against FDIC

January 28, 2011 – In a speech before the Native Sons and Daughters of Kansas, FDIC Chief Sheila Bair discussed a wide range of topics including her role as a public servant, causes of the housing bust and suggestions on how to prevent another financial crisis. Ms. Bair noted that she has spent most of […]

Banking Failures Increase To Eleven As Regulators Seize Four Banks

Four banking failures in four different states increased the number of banking collapses in 2011 to eleven banks. The FDIC, with a long list of 860 Problem Banks, was hit for $545.5 million in losses.  The total cost of the year’s banking failures now totals $1.2 billion. During 2010 a total of 157 banking failures […]

FirsTier Bank of Colorado Fails – Depositors Facing Losses

January 28, 2010 – Large depositors at failed FirsTier Bank of Colorado are shocked to learn that they potentially face the loss of all deposits held in excess of the FDIC deposit insurance limits.  This is the second time in two weeks that the FDIC was unable to find a purchaser for a failed bank, […]

Enterprise Banking Company Fails And Depositors Facing Losses

January 21, 2011 – Enterprise Banking Company, McDonough, GA was closed today by the Georgia Department of Banking and Finance which named the FDIC as receiver.  The FDIC was unable to find a buyer for Enterprise Banking.  To protect insured depositors, the FDIC created the Deposit Insurance National Bank of McDonough (DINB) to take over […]

Enterprise Banking Co Failure Exposes Inequity of FDIC Deposit Insurance – Uninsured Depositors Out Of Luck

January 21, 2011 -Enterprise Banking Company, McDonough, GA was closed today by the Georgia Department of Banking and Finance which named the FDIC as receiver.  The FDIC was unable to find a buyer for Enterprise Banking.  To protect insured depositors, the FDIC created the Deposit Insurance National Bank of McDonough (DINB) to take over the […]