“Huge Crash” In Commercial Real Estate Predicted The potential for massive losses on commercial bank loans has been an open secret for some time now. Both industry experts and regulatory agencies are concerned that a wave of defaults on commercial loans could result in billions of losses for an already weakened banking system. The latest […]
Regulators Attempt To Solve Commercial Loan Crisis With “Extend and Pretend” Guidelines
November 1, 2009 By Leave a Comment
One Failed Bank For October 16, 2009 – San Joaquin Bank
October 17, 2009 By Leave a Comment
Banking Failures – 99 And Counting The number of failed banks for 2009 has risen to 99. San Joaquin Bank of Bakersfield, California was closed by the California Department of Financial Institutions on Friday. The FDIC as receiver, entered into a purchase and assumption agreement with Citizens Business Bank or Ontario, California. San Joaquin Bank, […]
7 Reasons Not To Have Confidence In The Banking System
October 13, 2009 By Leave a Comment
Does the recent strong rally in the shares of bank stocks imply that the banking crisis is over, or are we looking at a mirage? Here are 7 reasons why the banking crisis may only be in the early stages of an ongoing crisis which could ultimately result in a lack of public confidence in […]
Banks Turn Blind Eye To Commerical Real Estate Losses
October 8, 2009 By Leave a Comment
The attitude of banks towards the collapse of commercial real estate seems to be ” ignore it and it will go away”. Sometimes this strategy works, sometimes it doesn’t. Right now, this “see no problem” attitude is beginning to raise eyebrows as losses on commercial real estate loans expand while corresponding loss reserves decline. Consider […]
Three Failed Banks For October 2, 2009 – Warren Bank Example Of Regulatory Failure
October 2, 2009 By 1 Comment
Banking Failures – 98 And Counting 2009 has now seen a total of 73 more failed banks than occurred for all of 2008. The latest banking closures bring total banking failures for 2009 to 98. The latest three failed bank on October 2, 2009 had total assets of $634 million and total losses to the […]
IMF Predicts Banking Losses of $2.8 Trillion
October 1, 2009 By Leave a Comment
The International Monetary Fund’s latest Global Financial Stability Report (GFSR) predicts additional trillions of dollars in bank losses and warns that there is still a significant risk of another economic downturn. In addition, massive public deficits may crowd out private borrowers, increasing the difficulty of financial institutions to raise needed capital. José Viňals, Director of […]
Troubled Asset Ratio Good Predictor Of Failed Banks
October 1, 2009 By Leave a Comment
Many Bank Failures Easy To Predict Evaluating the financial health of a bank is a complex process which requires an in depth analysis of a bank’s financial statements. Most bank depositors would be ill equipped to assess whether or not a particular bank might be in financial difficulty. There is, however, one simple concept […]
FDIC To Bolster Insurance Fund With Prepaid Bank Assessments
September 29, 2009 By Leave a Comment
FDIC To Increase DIF By $45 Billion The FDIC announced today a proposal to increase the deposit insurance fund (DIF) by requiring financial institutions to prepay three years of assessments. The collection of prepaid assessments will allow the FDIC to cover the cost of future banking failures without tapping their credit line with the US […]
FDIC Seeks To Avoid Treasury Bailout
September 29, 2009 By Leave a Comment
The FDIC Board of Directors will meet today to discuss the Deposit Insurance Fund Restoration Plan, assessments and funding. As the number of banking failures continues to increase, it has become obvious that the current amount of reserves ($10.4 billion) in the FDIC deposit insurance fund (DIF) are totally inadequate to cover expected FDIC losses […]