Failed Banks: Community Bank of West Georgia and Neighborhood Community Bank, 6/26/2009 Georgia continues to live up to its name as the Failed Bank Capital of the US with two more banking closures today of Community Bank of West Georgia, Villa Rica, GA and Neighborhood Community Bank, Newnan, Georgia. For all of 2009 to date, […]
More Georgia Banking Failures – Depositors Face Losses Of $1.1 Million
June 26, 2009 By Leave a Comment
Banks With The Most Troubled Loans – How Many Are On The Problem Bank List?
June 24, 2009 By Leave a Comment
Many More Banking Failures Likely The FDIC will not reveal what banks are on their Problem Bank List but MSNBC has come up with a list of 294 banks that have very high troubled asset ratios of 90% or higher. It’s probably a good bet that many of the institutions on the MSNBC list are […]
Problem Banks Took “Risks They Did Not Understand”
June 24, 2009 By Leave a Comment
In a recent interview with Forbes, FDIC Chairman Sheila Bair readily acknowledged that the primary reason for banking losses and failures was due to banks taking on excessive risk in their loan portfolios. Chairman Bair also discussed her ideas on regulatory changes that will prevent a future banking crisis, the health of the FDIC insurance […]
How Many Times Can A Failed Bank Be Rescued?
June 23, 2009 By Leave a Comment
TARP Funds Fail To Save Some Banks Most of the headline news on the banking industry centers on the largest banks paying back TARP funds previously received from the US Government. Less focus is being given to the numerous smaller banks in the country that received TARP money but apparently need additional bailout funds as […]
Beware The Deceptively High CD Rate Offers
June 19, 2009 By Leave a Comment
FDIC Warns On Deceptive CD Rate Offers Due to the very low interest rate policies of the Federal Reserve, savers have been hammered into oblivion. Short term treasury securities with a one year maturity offer rates barely above zero. Banks are offering longer term CD rates that approach only a tiny 2% yield. Under such […]
FDIC Loan Guarantees To Banks Soars 54% – Is The TLGP Saving Problem Banks?
June 17, 2009 By Leave a Comment
FDIC Debt Guarantees Soar 54% From Year End 2008 The FDIC Temporary Loan Guarantee Program (TLGP) was instituted late last year. The program’s stated purpose and goals, according to the FDIC, is as follows: The FDIC has created this program to strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior […]
How Georgia Became The Failed Bank Capital Of The U.S.
June 15, 2009 By Leave a Comment
California, Florida and Arizona are widely known to have had the most dramatic property declines since housing starting crashing in 2005. Logically, one would assume that the majority of banking failures occurred in these three States, but that is not the case as can be seen below. 2008-2009 Banking Failures State Number of Failed Banks […]
“Many More Bank Failures” Expected By FDIC Chairman
June 15, 2009 By Leave a Comment
Financial Crisis Far From Over The former head of the FDIC, the late Bill Seidman, had recently predicted that as many as 500 additional banks could fail in 2009. Now the current head of the FDIC, Sheila Bair, in an interview with Forbes Magazine states that the financial crisis is far from over and that […]
Will Citigroup Wind Up On The Problem Bank List?
June 5, 2009 By 1 Comment
Despite Government Aid, Citi Still Lags The Wall Street Journal is reporting that earlier this year the FDIC had attempted to have Citigroup’s financial health rating lowered to the point that would have resulted in Citigroup being added to the Problem Bank List. By lowering the rating on Citigroup, regulators would have been able to […]
Failed Banks For June 5, 2009
June 5, 2009 By Leave a Comment
Failed Bank: Bank of Lincolnwood, Lincolnwood, Illinois There was one more failed bank this week on June 5 – Bank of Lincolnwood, Lincolnwood, IL. The last two banking failures occurred on May 22, 2009. There have now been 12 more banking failures in 2009 than occurred for all of 2008. The FDIC closure of the […]