Georgia continues to lead the nation with bank failures as regulators closed two more failed banks in Georgia. The latest bank to fail in the State was the Georgia Trust Bank, Buford, GA. For the year a total of eight banks have failed in Georgia, making the State the capital of U.S. bank failures and […]
Georgia Trust Bank Fails – Feds Sell Bank To Community & Southern Bank
July 20, 2012 By Leave a Comment
The Royal Palm Bank of Florida Closed By Regualtors
July 20, 2012 By Leave a Comment
The Royal Palm Bank of Florida, Naples, FL, was closed today by the Florida Office of Financial Regulation which appointed the FDIC as receiver. Opened in 2001, The Royal Palm Bank had served all of Southwest Florida through three offices in Collier & Lee counties, offering full service commercial banking services. In 2006, The Royal […]
Non Stop Banking Scandals Are Dangerously Eroding Public Trust In The Financial System
July 17, 2012 By Leave a Comment
I am old enough to remember when most people considered banks to be rock solid bastions of financial strength and integrity. That was then, this is now, and a long running, non stop series of banking scandals seems to be dangerously eroding public confidence in the entire financial system. In recent weeks we have seen […]
Peregrine Financial CEO Confesses To 20 Year Undetected Fraud
July 14, 2012 By Leave a Comment
Russell Wasendorf, Sr., CEO of Peregrine Financial Group (aka PFG Best) admitted in a suicide note that he had embezzled millions of dollars from customers for the past 20 years. The reason the financial fraud was able to continue undetected for so long was due to a comedy of errors and omissions on the part […]
Glasgow Savings Bank, Oldest Bank In Missouri, Closed By Regulators
July 13, 2012 By Leave a Comment
Glasgow Savings Bank, Glasgow, Missouri, the oldest bank in the state, was closed down today by the Missouri Division of Finance. The FDIC, appointed as receiver, sold the failed bank to Regional Missouri Bank, Marceline, Missouri. Glasgow Savings Bank opened in April 1852. Despite a 160 year history of operations, the bank remained very small […]
Regulators Maintain Perfect Record Of Incompetence – Massive Fraud At Peregrine Financial Goes Undetected
July 13, 2012 By Leave a Comment
What is the point of having numerous regulatory agencies if they can’t detect blatant fraud despite numerous red flag warnings? Banking regulators turned a blind eye to absurdly reckless lending policies until the entire financial system came close to collapse in 2008. Regulators managed to convince themselves that Bernard Madoff’s $50 billion Ponzi scheme was […]
Fee Hungry Banks Charge “FDIC Fees” To Depositors
July 12, 2012 By Leave a Comment
It’s not easy being a banker. For example, how do you make up lost revenue from reduced loan demand? In the aftermath of the financial crisis of 2008, banks have been struggling to increase revenues as loan growth remains anemic. For the quarter ending March 31, 2012, total loan and lease balances of all FDIC […]
Montgomery Bank & Trust, Georgia, Closed By Regulators
July 6, 2012 By Leave a Comment
Montgomery Bank & Trust, a long time presence in Ailey, Georgia, was closed today by the Georgia Department of Banking and Finance. Montgomery Bank and Trust, which had been in business since 1926, became insolvent after a large amount of borrowers defaulted on their loans. The FDIC was appointed as receiver and sold the failed […]
Barclays Libor Scandal Expands – Why British Taxpayers Will Pay In The End
July 4, 2012 By Leave a Comment
The Barclays Libor scandal continues to escalate after revelations that senior officials at the Bank of England pressured Barclays to artificially lower the Libor rate. Documents released by Barclays suggest that U.K. treasury officials pressured Barclays to lower the Libor rate. This latest development threatens to turn the Libor rate fixing scandal into a showdown […]
Large Banks Simply Can’t Be Trusted – The Cultural Mindset Of Barclays and JP Morgan Management
July 3, 2012 By Leave a Comment
Continuing scandals in the banking industry are making it difficult to avoid the conclusion that the entire crony capitalism structure of banking has become endemically corrupt. Even as the too big to fail banks vehemently lobby against new regulations under the Dodd-Frank Act, recent scandals at Barclays Plc and JP Morgan make it clear that […]