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 operations of failed Bank of the Eastern Shore, the FDIC [...]

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 Greece appears to be on the verge of collapse [...]

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 a buyer for the failed bank and all deposits [...]

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 her life in public service to make a difference and to help people.  “Throughout [...]

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 occurred, the most since 1992 when 181 banks were closed. [...]

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, thereby leaving large depositors exposed to losses. Typically, when the FDIC [...]

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 operations of Enterprise [...]

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 operations of Enterprise Banking. When [...]

October 22, 2010- There are likely to be some shell shocked depositors tonight at First Arizona Savings, A FSB, Scottsdale, Arizona, who stand to lose $5.8 million in uninsured deposits.   After the Office of Thrift Supervision closed First Arizona and appointed the FDIC as receiver, the FDIC was unable to find a buyer for failed First Arizona. Typically, when a bank fails and [...]

The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama on July 21, 2010, permanently increases the deposit insurance limit to a maximum of $250,000. Deposit insurance limits had previously been temporarily increased from $100,000 to $250,000 effective from October 3, 2008, through December 31, 2010.  The higher insurance coverage applies [...]