FDIC Issues Rules For Less Than Well Capitalized Banks The FDIC has an internal list of 305 Problem Banks which they do not make public. In general, banks included on the list have series deficiencies with their finances, operations, or management that threaten their continued solvency. Once a bank is included on the list, they […]
Answers To Common Questions By Depositors When A Bank Fails: One Answer That May Surprise You
June 4, 2009 By 4 Comments
Common Questions By Failed Bank Customers The closing of a failed bank is usually a routine event but most people will have questions about how the closing of their bank will affect them. Many people, for example, may be surprised when they find out how the interest rate on their savings can change when a […]
What Should I Do When My Bank Fails?
June 4, 2009 By 3 Comments
Facts For Depositors When A Bank Fails The former head of the FDIC has predicted that up to 500 banks will fail this year and the FDIC has 305 banks on it Problem Bank List. The average depositor usually has no way to determine if his bank will fail. Given these circumstances, it is important […]
FDIC 2009 First Quarter Report
May 27, 2009 By Leave a Comment
Quarterly Banking Profile, March 31, 2009 On May 27, 2009, the FDIC released their Quarterly Banking Profile for the First Quarter of 2009. Highlights of the FDIC report include the following: Banks reported earnings in the four quarter 61% lower than a year ago, earning a net profit of $7.6 billion. This was a major […]
Problem Bank List Grows, Deposit Insurance Fund (DIF) Running On Empty
May 27, 2009 By 2 Comments
FDIC Quarterly Banking Profile 3/31/2009 The FDIC latest Quarterly Banking Profile, released today for the quarter ending March 31, 2009, showed another increase in the number of problem banks and a further large decrease in the FDIC Deposit Insurance Fund (DIF). As of the latest quarter, the number of problem banks increased to 305 with […]
FDIC And Congress Take Action To Bolster FDIC Deposit Insurance Fund (DIF)
May 25, 2009 By 1 Comment
FDIC Imposes Special Assessment To Increase DIF The FDIC had previously publicly acknowledged that the FDIC Deposit Insurance Fund (DIF) which protects depositors at failed banks had fallen to a dangerouly low level. The FDIC believes that it is important that the fund not decline to a level that could undermine public confidence in federal […]
Sign Of A Problem Bank – High CD Rates
May 25, 2009 By 2 Comments
Brokered Deposits Keep Problem Banks Alive Citizens National Bank, Macomb, Illinois, was the latest failed bank on May 22, 2009. One eye-catching statistic on this bank failure was the stunning percentage of Citizens assets represented by brokered deposits. Of total deposits of $400 million, a whopping 50% ($200 million) represented brokered deposits. Many […]
BankUnited Biggest Failed Bank Of 2009 With Massive Asset Losses
May 21, 2009 By Leave a Comment
Largest Banking Failure of 2009 The failure of BankUnited, FSB is the largest banking collapse of 2009 and marks the 34th FDIC insured bank to be added to the Failed Bank List. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $4.9 billion, leaving the DIF with a balance of […]
Deathwatch At Corus Bankshares
May 18, 2009 By 1 Comment
Corus Management Gives Bleak Assessment The deepening financial difficulties at Corus Bankshares were highlighted in the company’s latest Form 10-Q filed with the SEC today. Corus is required by banking regulators to develop a plan to achieve and maintain minimum regulatory capital levels, but today’s 10-Q filing provided little reason to believe that Corus would […]
FDIC Requests $500 Billion To Cover “Unforeseen Losses” On Failed Banks
May 18, 2009 By 1 Comment
FDIC Insurance Fund Near Empty Last week surprisingly saw no bank failures despite the fact that many banks are tottering on the edge of insolvency, such as Corus Bank. The reason the FDIC did not close more insolvent banks last week may be due to the fact that the FDIC Deposit Insurance Fund (DIF) is […]