Whatever Happened to Money Market Fund Rates? The New World of Zero Return and High Risk

Here’s an interesting tidbit from Merrill Lynch on the various money market funds that investors can sweep excess cash into.  The yields are enough to bring retired investors trying to live off of yield to tears. It’s hard to believe looking back that a mere five years ago, prior to the financial meltdown, savers could […]

Uninsured Depositors Face Losses on The Failure of The Community’s Bank, Bridgeport, CT

For the first time in over a decade a Connecticut bank failed as regulators swooped in to close The Community’s Bank, with headquarters in Bridgeport, CT. The Community’s Bank was a very small bank with only $26.3 million in assets that was floundering under an avalanche of nonperforming loans.  Established in 2001 the Bank was […]

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 […]

Fee Hungry Banks Charge “FDIC Fees” To Depositors

It’s not easy being a banker. For example, how do you make up lost revenue from reduced loan demand? In the aftermath of the financial crisis of 2008, banks have been struggling to increase revenues as loan growth remains anemic.  For the quarter ending March 31, 2012, total loan and lease balances of all FDIC […]

Five Banks Collapse In Four States – 2012 Bank Failures Total 22 – Are Your Deposits Insured?

Regulators got back to work during the last week of April, closing five banks in four different states.  A total of 22 banks have failed this year compared to a total of 92 bank failures during 2011.  If the rate of bank failures for the first four months of the year is annualized, total bank […]

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 […]

FDIC Forecasts $19 Billion In Losses On Banking Failures – Why The Losses Will Be Five Times Larger

The FDIC today released an update on expected losses for banking failures through 2015. For the five year period 2011 through 2015 the FDIC is forecasting total losses from banking failures  of $19 billion.  Total losses from banking failures during 2010 were $23 billion compared to $6.4 billion in 2011 year to date losses.  A […]

Did Regulators Stop A Run on the Bank At Failed Public Savings Bank?

Regulators closed a small 83 year old bank today in an unusual Thursday afternoon closing.  Traditionally, failed banks are closed by regulators at the close on business on Friday afternoon to minimize customer disruption. Was the unusual timing of the bank closing related to panicked depositors withdrawing money?  Although the FDIC did not comment on […]

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 […]

FDIC Warns About Withdrawn Deposit Insurance Scam

January 12, 2011 – The FDIC reported today that they received numerous reports from consumers who had received emails allegedly sent to them by the FDIC.   The email attempts to solicit sensitive personal financial information from the recipient by claiming that FDIC insurance on their deposit accounts had been withdrawn.  The email is a scam […]