In a strongly worded speech at the Summit On Residential Mortgage Servicing For the 21st Century, FDIC Chief Sheila Bair condemned the mortgage servicing industry for their role in extending the mortgage crisis. Ms. Bair stated that the housing industry has been stabilized by emergency measures but that the effects of the housing bust and […]
FDIC Chief Condemns Mortgage Servicers While Ignoring FDIC Role In Mortgage Crisis
January 19, 2011 By 3 Comments
Independent Bank’s Stock Price Soars – Is A Takeover Looming?
January 17, 2011 By 1 Comment
After hitting a low of $1 per share in mid December, the stock price of Independent Bank (IBCP) has soared to almost $4 per share. On Friday, IBCP rose $.63 to $3.80, a 20% gain on the day. Volume of the normally thinly traded stock has also increased dramatically since mid December. Trading volume for […]
Oglethorpe Bank of Georgia Closed By Regulators And Sold To Bank of the Ozarks
January 14, 2011 By Leave a Comment
January 14, 2010 – The Georgia Department of Banking and Finance closed Oglethorpe Bank, Brunswick, Georgia, today and appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Bank of the Ozarks to assume all deposits of Oglethorpe Bank. The two branches of Oglethorpe Bank will reopen on Saturday as […]
Court Ruling Against Bank Foreclosures Could Spiral Into Full Blown Financial Crisis
January 12, 2011 By 4 Comments
The recent Massachusetts Supreme Court ruling against Wells Fargo and U.S. Bancorp is likely to bring foreclosures to a crawl, resulting in a further destabilizing of housing markets. The Court ruling is a major win for debtors and a severe blow for creditors trying to clear a backlog of millions of defaulted mortgages. The Massachusetts […]
Legacy Bank of Scottsdale, Arizona Closed By Regulators And Purchased By Bank With Unpaid TARP Loans
January 7, 2011 By Leave a Comment
January 7, 2011 – Legacy Bank of Scottsdale, Arizona, was closed today by the Arizona Department of Financial Institutions, which appointed the FDIC as receiver. The FDIC, acting as receiver, sold failed Legacy Bank to Enterprise Bank & Trust, St. Louis, Missouri. Enterprise will assume all deposits and purchase essentially all assets of failed Legacy […]
The Compelling Case For A New Wave Of Mortgage Defaults And Bank Failures
January 7, 2011 By Leave a Comment
Two new reports make a compelling case that the markets have not fully discounted the probability of another flood of residential foreclosures precipitated by the continuing decline in home values. The potential impact of price depreciation on the quality of loan portfolios casts serious doubt on the notion of a long term profit recovery for […]
Banks With $1.2 Billion In Unpaid TARP Loans Buy 18 Failed Banks From FDIC
January 5, 2011 By 1 Comment
During 2010, 12 different banks with $1.2 billion in outstanding TARP loans to the US Treasury purchased 18 different failed banks from the FDIC. According to a recent report from the Congressional Oversight Committee, TARP funds totaling $205 billion were distributed to a total of 707 banks. The largest recipients of TARP money have repaid […]
157 Bank Failures In 2010 Highest Since 1992 – Why Next Year Will Be Worse
December 31, 2010 By Leave a Comment
December 31, 2010 – Banking failures for 2010 were at the highest level since 1992 as 157 financial institutions collapsed, the victims of collapsing real estate prices, a weak economy and poor lending decisions. The depth and breath of the current banking crisis makes the savings and loan crisis of the late 1980’s and early […]
Whitney National Bank Acquired By Hancock Holding As Banks Seek Profits Through Takeovers
December 23, 2010 By 1 Comment
December 22, 2010 – Besieged by slow loan growth, loan defaults and costly new regulations, the banking industry is turning to mergers and acquisitions to rebuild profits. In the latest wave of recent bank acquisitions, Hancock Holding Company and Whitney Holding Company announced that Whitney would merge into Hancock in a stock-for-stock transaction. Both banks […]
FDIC Sells Failed Bank Assets For Pennies On The Dollar To Bank With Outstanding TARP Loans
December 22, 2010 By Leave a Comment
December 22, 2010 – The FDIC closed on the sale of $279 million of assets from nine failed bank receiverships. The winning bidder of the asset pool was Cache Valley Bank, Logan, Utah, with a purchase price of 22.2% of the unpaid principal balance of $279 million. The failed bank assets will be placed into […]