Five Years After the Banking Crisis, Hundreds of Problem Banks Still Struggle

While many banks have completely recovered from the banking and financial crises of over six years ago, the number of banks classified as “Problem Banks” by the FDIC has remained stubbornly high. A milestone of sorts was reached recently when, after five years, the number of banks on the FDIC’s Problem Bank List finally declined […]

GreenChoice Bank, fsb, Chicago, IL, Closed by Regulators

GreenChoice Bank, fsb, Chicago, Illinois, a small community bank, was closed today by the Office of the Comptroller.  The FDIC, appointed as receiver, sold the failed bank to Providence Bank, LLC, South Holland, Illinois, which will assume all deposits of GreenChoice Bank. GreenChoice Bank had been around for over 100 years, having been founded in […]

Eastside Commercial Bank, Conyers, GA, Becomes 13th Bank Failure of 2014

Georgia state regulators closed the Eastside Commercial Bank, Conyers, Georgia, and appointed the FDIC as receiver.  In order to protect depositors, the FDIC sold Eastside Commercial Bank to Community & Southern Bank, Atlanta, Georgia, which will assume all deposits of the failed bank. Eastside Commercial Bank did not even last a decade, having been founded […]

Would Bank Living Wills/Resolution Plans Actually Help Resolve the Next Banking Crisis?

The public portions of the annual resolution plans or living wills of 17 large financial institutions were jointly released by the FDIC and the Federal Reserve Board today.  The resolution plans describe in detail a financial institution’s plans for a rapid and orderly resolution under the U.S. Bankruptcy Code to address material financial distress or […]

FDIC Issues Enforcement Actions to Three Problem Banks

The FDIC took enforcement actions against 39 banks in May, up from 31 during the previous month.  The 39 orders issued by the FDIC in May 2014 included two consent orders, one prompt corrective action directive, seven section 19 orders, three civil money penalties, and sixteen orders terminating consent orders and cease and desist orders. […]

The Freedom State Bank, Freedom, OK, Closed by Regulators

Most people would probably assume that a bank that can stay in business for almost one hundred years would be The Rock of Gibraltar from a financial standpoint.  This was not the case today as state regulators closed 95 year old The Freedom State Bank located in Freedom, Oklahoma. Founded in 1919 The Freedom State […]

Valley Bank, Fort Lauderdale, FL, Closed by Regulators, 11th Banking Failure of 2014

Valley Bank of Fort Lauderdale, Florida, was one of two banks shuttered by regulators today.  The other banking failure was Valley Bank, Moline, Illinois.  Both failed banks were owned by the same holding company, River Valley Bancorp, Inc., Davenport, IA.  The holding company was not included in the bank closings or the receivership. Florida state […]

Valley Bank, Moline, IL, Closed by Regulators, Tenth and Largest Bank Failure of 2014

The Illinois Department of Financial and Professional Regulation closed the Valley Bank, Moline, Illinois, and appointed the FDIC as receiver.  To protect depositors, the FDIC sold the failed bank to Great Southern Bank, Reeds Spring, Missouri, which will assume all deposits of Valley Bank. Valley Bank was founded by a group of local bankers and […]

Slavie Federal Savings Bank, MD, Closed by Regulators, Ninth Bank Failure of 2014

Slavie Federal Savings Bank, Bel Air, Maryland, became the ninth banking failure of 2014 as the Office of the Comptroller of the Currency closed the insolvent bank.  The FDIC, appointed as receiver, sold the failed bank to Bay Bank, FSB, Lutherville, Maryland, which will assume all deposits of failed Slavie Federal. The severe banking crisis […]

FDIC Reveals That Over 400 Banks Remain on the Problem Bank List

The recently released Quarterly Banking Profile from the FDIC reveals that over 400 banks remain on the Problem Bank List more than six years after the start of the biggest banking crisis since the 1930s. As of March 31, 2014, the FDIC’s confidential Problem Bank List contains the names of 411 banking institutions that have […]