1st Regents Bank, Andover, MN, was closed today by the FDIC and state regulators. In its role as receiver, the FDIC sold the failed bank to First Minnesota Bank, Minnetonka, MN, which will assume all deposits of 1st Regents. Established in May 2001, 1st Regents was a small bank with only $50.2 million in total […]
Westside Community Bank, Washington, Closed By Regulators – First Bank Failure of 2013
January 11, 2013 By Leave a Comment
Westside Community Bank, University Place, Washington, became the first bank closing of 2013. Regulators from the Washington State Department of Financial Institutions closed the bank today and appointed the FDIC as receiver. To protect depositors, the FDIC sold failed Westside Community Bank to Sunwest Bank, Irvine, CA. Westside Community Bank was established in March 1995. […]
Warren Buffett – “I Don’t Understand Why People Hate Bank of America”
January 3, 2013 By 4 Comments
Warren Buffett is probably confused. In a recent poll, consumers rated Bank of America as the second “absolute worst company in America.” How could so many people hate a bank which has provided generations of Americans with financing to build homes and businesses across America? Even as Bank of America seemed like it was headed […]
Bank Savers Get Zero Returns – Is It Time To Invest In Bond Funds?
January 3, 2013 By Leave a Comment
Many former bank savers, disgusted by the near zero rates offered on their savings by banks, have increasingly turned to bond funds as a means of harvesting interest income. Since 2008, when the Federal Reserve decided to force interest rates to unprecedented lows, investors have poured a staggering $1 trillion into bond funds. Will 2013 […]
2012 Bank Failures Lowest Since 2008 As Regulators Close 51 Banks
December 31, 2012 By Leave a Comment
During the past five years we have witnessed the greatest financial turmoil since the Great Depression. Hundreds of giant bank failures rocked the nation, real estate values crashed, trillions of dollars of wealth vanished overnight and millions of Americans lost their jobs. Although a relative calm has been restored due to unprecedented actions by both […]
Bank Stocks Were 2012’s Best Investment – Now What?
December 31, 2012 By Leave a Comment
Bank stocks had few friends during 2011 during which time financial stocks plunged by over 18%, even as the S&P 500 eked out a slim total return of 2.1%. As financial stocks dropped last year to levels at which they were selling well below book value in many cases, buyers came back in force. During […]
FHA Reverse Mortgage Losses Of $28 Billion – Profits For Banks, Disaster For Borrowers and Taxpayers
December 15, 2012 By Leave a Comment
Reverse mortgages have become the new minefield in government sponsored mortgage lending. According to an independent estimate done for HUD, losses could exceed $28 billion through 2019. To put that figure into perspective, total losses to the FDIC Deposit Insurance Fund for the 51 banking failures of 2012 total only $2.5 billion. The good news […]
FHA Loans Immediately Put Borrowers Into A Negative Equity Position
December 15, 2012 By Leave a Comment
In a speech given at the Brookings Institution, Brian Moynihan, CEO at Bank of America, said “We need to look hard at some of the old assumptions and ask the question is homeownership the right solution for everyone?” Moynihan went on to cite the Federal Housing Administration (FHA) as an example of what is wrong […]
Community Bank of the Ozarks, Sunrise Beach, MO, Closed By Regulators
December 14, 2012 By Leave a Comment
Community Bank of the Ozarks, Sunrise Beach, MO, was closed today by the Missouri Division of Finance, which named the FDIC as receiver. Community Bank of the Ozarks, which describes itself as a “strong, independent community bank” on its website, was buried under an avalanche of defaulted loans. At September 30, 2012, the Bank had […]
Tips On Saving and Managing Money For Young Adults – FDIC Consumer News
December 14, 2012 By Leave a Comment
Why do so many people make mistakes in handling money? The foundation to wealth rests upon sound principles for borrowing, saving and investing yet many Americans lack the fundamental knowledge necessary to accomplish their goals. According to the State of Working America, the median wealth for white households is only $97,000 and for black households […]