Will the “too big to fail” banks that pose a systemic risk to the financial system ever be broken up? If Thomas Hoenig, former Kansas City Fed president wins Senate nomination as the new Vice Chairman of the FDIC, the big banks may have a lot to worry about. Mr. Hoenig should easily win Senate […]
Community Bank of Rockmart, GA, Closed By Regulators
November 10, 2011 By Leave a Comment
Community Bank of Rockmart, Rockmart, Georgia, was closed today by state regulators who appointed the FDIC as receiver. Century Bank of Georgia, Cartersville, GA, entered into a purchase and assumption agreement with the FDIC under which it will assume all deposits of failed Community Bank of Rockmart. Since banks are closed on Friday in observance […]
Fannie and Freddie Executives Pay Themselves $48 Million For Sterling Performance and Then Ask Taxpayers For $13.8 Billion Bailout
November 10, 2011 By Leave a Comment
What we all wouldn’t give to be an executive at bankrupt housing agencies Fannie Mae or Freddie Mac? According to a report released by the Inspector General of the FHFA, a total of $47.8 million was paid to the top ten executives of Fannie Mae and Freddie Mac since they were placed into receivership. The […]
Why Are We Having Nonstop Financial Crises?
November 8, 2011 By 1 Comment
Issuing a sell opinion on a bank stock is usually a short route to oblivion for a banking analyst. Mike Mayo is one banking analyst who did issue sell opinions on banks yet managed to survive. In his new book, “Exile on Wall Street”, banking analyst Mike Mayo provides an insider’s view on why the […]
29 Banks That Could Destroy The Global Economy
November 8, 2011 By 1 Comment
The Financial Stability Board (FSB) was established to coordinate international efforts to promote effective regulation and supervision of the global financial system. In its latest report on global systemically important banks, the FSB makes it clear that the world’s largest banks have become too big to fail without crashing the global economy. The leaders of […]
Too Big To Fail Casino Banks Make $518 Billion Bet On PIIGS Sovereign Debt
November 7, 2011 By 4 Comments
The “Too Big To Fail Banks” are at it again, making huge speculative bets on the odds of sovereign default by Portugal, Italy, Ireland, Greece and Spain. The costly lessons of the derivatives debacle of 2008 have apparently been forgotten. In 2008, the Too Big To Fail banks bought massive amounts of credit default swaps […]
SunFirst Bank, Saint George, Utah, Finally Closed By Regulators
November 4, 2011 By Leave a Comment
The Utah Department of Financial Institutions closed SunFirst Bank, Saint George, Utah, and appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Cache Valley Bank, Logan, Utah, under which Cache Valley will assume most of the deposits of SunFirst Bank. The FDIC will retain $15 million in deposits that […]
Mid City Bank, Inc., Closed By Nebraska Regulators
November 4, 2011 By Leave a Comment
Mid City Bank, Inc., Omaha, NE, became the nation’s 86th banking failure of 2011 after being closed by state regulators. The FDIC, appointed as receiver, sold the failed bank to Purdum State Bank, Purdum, Nebraska, which will assume all deposits and purchase all assets of Mid City Bank. On Saturday, Purdum State Bank will change […]
FDIC Issues 56 Enforcement Actions In September
November 4, 2011 By Leave a Comment
A total of 56 administrative enforcement actions were taken by the FDIC against problem banks in September, up from 53 in August. The most serious September enforcement actions taken by the FDIC included 10 consent orders, 3 prompt corrective actions and 16 civil money penalties. Please see the complete list of enforcement actions taken below. […]
Bank Of America Derivatives Timebomb Shows System Is Corrupt To The Core
November 3, 2011 By 12 Comments
The Federal Reserve recently allowed Bank of America to move its massive derivative positions from the bank holding company to its banking subsidiary which is an FDIC insured depository institution. By allowing this transfer, the Federal Reserve has allowed Bank of America to shift the risk of loss on speculative derivative contracts from the non-bank […]