In a speech before the American Mortgage Conference, Acting Director Edward DeMarco of the Federal Housing Finance Agency (FHFA), said that Fannie Mae and Freddie Mac have little chance of emerging from conservatorship. Both Fannie Mae and Freddie Mac, the mortgage financing giants of the housing industry, faced collapse in late 2008 as mortgage defaults […]
Archives for September 2011
First International Bank, Plano, Texas, Closed By Regulators
September 30, 2011 By 1 Comment
The first bank failure in the state of Texas occurred today when the Texas Department of Banking closed First International Bank, Plano, Texas. The FDIC, appointed as receiver for the failed bank, sold First International to American First National Bank of Houston, Texas. Ironically, First International Bank’s origins were based on a failed bank. First […]
FDIC Issues 53 August Enforcement Actions On Problem Banks
September 30, 2011 By Leave a Comment
The FDIC issued a list of 53 administrative enforcement actions taken in August against problem banks and individuals. Among the enforcement actions issued were 11 consent orders, 14 civil money penalties, 1 prompt corrective action and 17 orders terminating previous prompt corrective action directives, consent orders and cease and desist orders. Please see complete list […]
Citizens Bank of Northern California Closed By Regulators
September 23, 2011 By Leave a Comment
Citizens Bank of Northern California, Nevada City, CA, founded in 1995, was closed today by the California Department of Financial Institutions. The FDIC, acting as receiver, sold the failed bank to Tri Counties Bank, Chico, CA. Citizens Bank had seven branches which will reopen on Monday as branches of Tri Counties Bank. Depositors of failed […]
Bank of the Commonwealth, Norfolk, VA, Closed By Regulators
September 23, 2011 By 1 Comment
Bank of the Commonwealth, Norfolk, Virginia, founded in 1970, was closed today by the Virginia State Corporation Commission. The FDIC, acting as receiver, sold the failed bank to Southern Bank and Trust Company of Mount Olive, North Carolina. Bank of the Commonwealth had a total of 21 branches with 17 operating in Virginia and 4 […]
European Banking Crisis Spins Out Of Control – Officials Have No Solutions
September 12, 2011 By 1 Comment
The European banking crisis intensified as the threat of debt default contagion spread across Europe. What was once a “Greek” problem has quickly overwhelmed all of Europe, resulting in a broad sell of equities and frozen credit markets. Bloomberg reports that European banks are now being valued at levels last seen during the worst of […]
Will The Run On Greek Banks Spread Across Europe?
September 10, 2011 By 1 Comment
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 […]
$1.2 Trillion Of Nervous Money Floods Into U.S. Banking System
September 9, 2011 By 1 Comment
With the European banking system tottering on the brink of collapse, nervous holders of cash have flooded the U.S. banking system with $1.2 trillion of deposits. Panicky holders of large amounts of cash are taking advantage of a provision of the Dodd-Frank Act that provides unlimited FDIC insurance coverage on noninterest-bearing transaction accounts. The Dodd-Frank […]
The First National Bank of Florida Acquired By CharterBank of Georgia
September 9, 2011 By Leave a Comment
September 9, 2011 – The First National Bank of Florida, Milton, Florida, became the nation’s 71st banking failure. The Bank was closed by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver. Founded in 1984, The First National Bank of Florida was an 8 branch, independent community bank which served […]
CreekSide Bank of Georgia Closed By Regulators
September 3, 2011 By Leave a Comment
CreekSide Bank, Woodstock, Georgia, was closed today by state regulators who appointed the FDIC as receiver. The failed bank was sold by the FDIC to Georgia Commerce Bank which will assume all deposits of the failed bank. Creekside Bank was very similar to Patriot Bank, the second Georgia bank closed by regulators today. Both banks […]