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 total of 157 banks failed in 2010 compared to year [...]

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 the strange Thursday bank [...]

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 [...]

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personal financial information from the recipient by claiming that FDIC insurance on their deposit accounts had been withdrawn.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 and consumers are strongly [...]

December 22, 2010 – The latest FDIC Quarterly highlights the ongoing concern about the FDIC’s ability to protect depositors in the event of a large number of banking failures.  Without the explicit backing of the FDIC by the US Treasury, the FDIC lacks the resources to adequately protect the $5.4 trillion in deposits that it currently insures. The  FDIC insurance fund [...]

The number of failed banks reached 157 as regulators closed six banks in Florida, Georgia, Arkansas and Minnesota. The six failed banks this week had a total of $1.2 billion in assets and resulted in a loss to the FDIC Deposit Insurance Fund of $267.6 million.  The total loss to the depleted FDIC Deposit Insurance fund for the year now amounts to approximately $22 billion.  The [...]

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 [...]

October 19, 2010 – The FDIC announced today a long term Restoration Plan to return the Deposit Insurance Fund (DIF) to a positive balance.   The long term goal of the proposed fund management plan is to maintain a positive fund balance, even “during periods of large fund losses, and maintaining steady, predictable  assessment rates throughout economic and credit [...]

October 15, 2010 – Security Savings Bank, F.S.B., Olathe, Kansas, was closed by the Office of Thrift Supervision, which appointed the FDIC as receiver.  The FDIC sold failed Security Savings Bank to Simmons First National Bank, Pine Bluff, Arkansas, which will assume all deposits and purchase all assets of the failed bank. Security Savings Bank, a nine branch bank, had been [...]

September 17, 2010 – After closing only one bank since August 20th, regulators picked up the pace and closed six banking institutions.  With the recent increase in the number of banks on the FDIC’s “Problem Bank List“, regulators should be busy well into 2011 closing institutions that are considered  “unsafe and unsound”. As of the latest report [...]