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 […]
Three Failed Banks For October 2, 2009 – Warren Bank Example Of Regulatory Failure
October 2, 2009 By 1 Comment
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 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 […]
Regulators Were Blind To Risk In Biggest U.S. Banking Failure
September 29, 2009 By Leave a Comment
The most expensive banking failure in U.S. history was the closure of IndyMac Bank in July 2008. The original estimated loss to the FDIC of $8.9 billion has recently been increased to $10.7 billion or 33% of IndyMac’s assets at the time of closure. The story of how IndyMac Bank was allowed by regulators […]
One Failed Bank For September 25, 2009
September 27, 2009 By Leave a Comment
Banking Failures – 95 And Counting 2009 has now seen a total of 70 more failed banks than occurred for all of 2008. The latest banking closure brings total banking failures for 2009 to 95. The latest failed bank on September 25, 2009 had total assets of $2 billion and total losses to the FDIC […]
FDIC Sheila Bair – “Too Big To Fail Creates Enormous Risk”
September 18, 2009 By Leave a Comment
Too Big To Fail Doctrine Needs To Be Abandoned FDIC Chairman Sheila Bair, in a speech at Georgetown University, outlined her plan for a better regulated financial system based on market discipline and ending the “too big to fail” concept. Chairman Bair’s viewpoint is that the doctrine of “too big to fail” rewards mismanagement and […]
2 Failed Banks For September 18, 2009 – Irwin Financial’s “Adequately Capitalized” Banks Closed
September 18, 2009 By Leave a Comment
Banking Failures – 94 And Counting 2009 has now seen a total of 69 more failed banks than occurred for all of 2008. The latest banking closures by the FDIC bring total banking failures for 2009 to 94. The latest two failed banks on September 18, 2009 had total assets of $3.2 billion and total […]
FDIC Proposes Mortgage Plan For Unemployed
September 15, 2009 By Leave a Comment
FDIC Forbearance Program Proposed In an attempt to prevent further foreclosures and mitigate the amount of losses on failed bank assets, the FDIC proposes that acquirers of failed banks initiate a forbearance plan for unemployed homeowners. As part of its loss-share agreement with acquirers of failed FDIC-insured institutions, the FDIC is encouraging its loss-share partner […]