Banking Failures – 57 and Counting There were four more failed bank this week: First Piedmont Bank, Winder, Georgia Bank First, Sioux Falls, South Dakota Vineyard Bank, National Association, Rancho Cucamonga, CA Temecula Valley Bank, Temecula, CA 2009 has now seen a total of 32 more failed banks than occurred for all of 2008. The […]
Problem Bank Candidate Citigroup Facing Tougher FDIC Regulation
July 15, 2009 By Leave a Comment
Citigroup Faces Tougher Government Regulation Citigroup, probably the most financially challenged of the major banks, is facing increased regulation by the FDIC. In early June, it was noted that FDIC Chairman Sheila Bair was becoming increasingly frustrated with Citigroup’s management and their inability to implement changes necessary to strengthen the bank. At one point early […]
$40 Billion In Troubled Bank Assets To Be Purchased Under PPIP
July 9, 2009 By 1 Comment
Joint Statement Issued On PPIP The Treasury, Federal Reserve and the FDIC today released a joint statement on the plan to buy troubled bank assets under the Public-Private Investment Program (PPIP). Nine chosen money management firms will purchase as much as $40 billion in troubled bank assets using mostly taxpayer money. The goal of the […]
FDIC Restricts Private Capital Investments In Failed Banks
July 2, 2009 By Leave a Comment
Qualified Buyers Only Despite 52 failed banks in 2009 and many more to follow, Sheila Bair, FDIC Chairman, has wisely chosen to restrict private capital investments in failed banks to qualified buyers only. In mid May of this year, Ms. Bair had made the following comments: I am particularly concerned with new owners’ ability to […]
Political Influence Saves Troubled Bank – Case Of Central Pacific Financial
July 1, 2009 By Leave a Comment
Troubled Bank Gets US TARP Funds After Senator Intervenes Many US officials at the Treasury and Federal Reserve have criticized Japan’s policy of propping up Zombie banks and therefore prolonging their banking crisis. The theory was that the weakest banks made the worst lending decisions and should be allowed to fail instead of being subsidized […]
Ground Zero Of The Housing Collapse – CA, FL, AZ, NV
June 30, 2009 By 1 Comment
FDIC 2009 Economic Landscape The FDIC Economic Landscape Report details how the out of control lending mania created the perfect housing storm. The largest housing bust in US history centers in four states which had the largest housing price increases and are now suffering the consequences of a boom gone bust. The Sand States: Anatomy […]
FDIC Issues Cease And Desist Orders To 20 Problem Banks – Why Are These Banks Still Open?
June 26, 2009 By 1 Comment
FDIC Cease and Desist Orders The FDIC made public today a list of 20 banking institutions that were recently issued cease and desist orders from the FDIC, as follows: FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b) (Cease-and-Desist) First State Bank, Flagstaff, AZ; FDIC-09-171b; Issued 5/1/09 Golden Security Bank, Rosemead, CA; FDIC-09-108b; […]
Smaller Banks Seek TARP Funds To Avoid Banking Failure
June 26, 2009 By Leave a Comment
Small Banks Line Up For TARP Money – No End In Sight The banking crisis may or may not be over for the nation’s largest banking institutions, but many smaller banks, desperate for capital are lining up for TARP funds. As the recession continues and asset values backing loans continue to erode, smaller banks are […]