The State of South Carolina experienced its second bank failure of the year as regulators closed Carolina Federal Savings Bank, Charleston, SC. The Office of the Comptroller of the Currency closed the insolvent bank to protect depositors and appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Bank of […]
First Capital Bank, Kingfisher, OK, Closed By Regulators After 110 Years Of Operation
June 8, 2012 By Leave a Comment
Any bank that can stay in business for 110 years must have been doing something right. First Capital Bank, originally founded in 1902 as Guthrie Savings Bank, provided banking services to its customers at a time when Oklahoma was not yet a state and Guthrie was the capital of the Oklahoma Territory. The long and […]
One Out Of Every Ten Banks Is A “Problem Bank” – FDIC Issues 56 Enforcement Actions In April 2012
May 25, 2012 By Leave a Comment
The FDIC announced in a press release that 56 enforcement actions were taken against banks and individuals during April 2012. In the previous month, the FDIC had issued 72 enforcement actions. The FDIC enforcement actions issued in April included 14 civil money penalties, 1 prompt corrective action, 13 consent orders, 19 orders terminating previous consent […]
Higher Bank Profits Driven By Lower Loan Loss Provisions – Core Lending Business Declines
May 25, 2012 By 1 Comment
The earnings “recovery” in the banking industry continues to be driven by reduced loan loss provisions and higher fees rather than a fundamental improvement in the core lending business. The FDIC’s Quarterly Banking Profile for the first quarter of 2012 reports that aggregate quarterly profits of commercial banks and savings institutions increased for the 11th […]
Alabama Trust Bank, N.A., Sylacauga, Alabama, Closed By Regulators
May 18, 2012 By Leave a Comment
Alabama Trust Bank, National Association, Sylacauga, Alabama, was closed today by the Office of the Comptroller of the Currency. The FDIC, appointed as receiver, sold the failed bank to Southern States Bank, Anniston, Alabama, which assumed all deposits of Alabama Trust Bank. Alabama Trust Bank, established in April 2000, was a small one branch bank […]
Banks Amass $211 Trillion In Derivatives, JP Morgan Loses $2 Billion And Volcher Rule Debates Continue
May 11, 2012 By 1 Comment
The goal of the Volcker Rule, which became law under the Dodd-Frank Act was to restrict speculative trading activity in risky derivatives by the Too Big To Fail Banks. The ban on proprietary bank trading was proposed by former Federal Reserve Chairman Paul Volcker who believed that one of the primary causes of the 2008 […]
Security Bank, North Lauderdale, FL, Closed By Regulators
May 4, 2012 By Leave a Comment
Security Bank, National Association, North Lauderdale, FL was closed by the Office of the Comptroller of the Currency. The FDIC, appointed as receiver, sold the failed bank to Banesco USA of Coral Gables, Florida. Under the purchase and assumption agreement between Banesco and the FDIC, all deposits of failed Security Bank will be assumed by […]
Dallas Fed Says “Too Big To Fail Banks” Should Be Broken Up – Future “Severe Crises” Possible
May 3, 2012 By Leave a Comment
The Federal Reserve Bank of Dallas joined the growing chorus of critics who maintain that the Dodd-Frank Act will not prevent future taxpayer funded bank bailouts. The Dallas Fed said taxpayers are still at risk for the cost of large banks failures and that any future bailouts should result in severe consequences for both bank […]
Five Banks Collapse In Four States – 2012 Bank Failures Total 22 – Are Your Deposits Insured?
April 28, 2012 By Leave a Comment
Regulators got back to work during the last week of April, closing five banks in four different states. A total of 22 banks have failed this year compared to a total of 92 bank failures during 2011. If the rate of bank failures for the first four months of the year is annualized, total bank […]
Palm Desert National Bank, California, Closed By Regulators
April 27, 2012 By Leave a Comment
Palm Desert National Bank, Palm Desert, California, was closed today by the Office of the Comptroller of the Currency. The FDIC, appointed as receiver, sold the failed bank to Pacific Premier Bank, Costa Mesa, CA., which will assume all deposits of Palm Desert National. Established in 1981, Palm Desert was a relatively small bank with […]