Two new reports make a compelling case that the markets have not fully discounted the probability of another flood of residential foreclosures precipitated by the continuing decline in home values. The potential impact of price depreciation on the quality of loan portfolios casts serious doubt on the notion of a long term profit recovery for […]
The Compelling Case For A New Wave Of Mortgage Defaults And Bank Failures
January 7, 2011 By Leave a Comment
Banks With $1.2 Billion In Unpaid TARP Loans Buy 18 Failed Banks From FDIC
January 5, 2011 By 1 Comment
During 2010, 12 different banks with $1.2 billion in outstanding TARP loans to the US Treasury purchased 18 different failed banks from the FDIC. According to a recent report from the Congressional Oversight Committee, TARP funds totaling $205 billion were distributed to a total of 707 banks. The largest recipients of TARP money have repaid […]
157 Bank Failures In 2010 Highest Since 1992 – Why Next Year Will Be Worse
December 31, 2010 By Leave a Comment
December 31, 2010 – Banking failures for 2010 were at the highest level since 1992 as 157 financial institutions collapsed, the victims of collapsing real estate prices, a weak economy and poor lending decisions. The depth and breath of the current banking crisis makes the savings and loan crisis of the late 1980’s and early […]
Whitney National Bank Acquired By Hancock Holding As Banks Seek Profits Through Takeovers
December 23, 2010 By 1 Comment
December 22, 2010 – Besieged by slow loan growth, loan defaults and costly new regulations, the banking industry is turning to mergers and acquisitions to rebuild profits. In the latest wave of recent bank acquisitions, Hancock Holding Company and Whitney Holding Company announced that Whitney would merge into Hancock in a stock-for-stock transaction. Both banks […]
Consumer Scams Involving Counterfeit Cashier’s Checks Continue
December 22, 2010 By Leave a Comment
December 22, 2010 – FDIC Issues Alerts On Counterfeit Cashier’s Checks The reason why counterfeit official checks continue to appear is because they produce huge profits for criminals. An unwary consumer, trained to believe that a cashier’s check is equivalent to cash, can be an easy mark for con men and criminals. The increasing number […]
$2.3 Trillion In Uninsured Bank Deposits Cause For Concern
December 22, 2010 By Leave a Comment
December 22, 2010 – The latest FDIC Quarterly highlights the ongoing concern about the FDIC’s ability to protect depositors in the event of a large number of banking failures. Without the explicit backing of the FDIC by the US Treasury, the FDIC lacks the resources to adequately protect the $5.4 trillion in deposits that it […]
FDIC Sells Failed Bank Assets For Pennies On The Dollar To Bank With Outstanding TARP Loans
December 22, 2010 By Leave a Comment
December 22, 2010 – The FDIC closed on the sale of $279 million of assets from nine failed bank receiverships. The winning bidder of the asset pool was Cache Valley Bank, Logan, Utah, with a purchase price of 22.2% of the unpaid principal balance of $279 million. The failed bank assets will be placed into […]
Six Problem Banks With $1.2 Billion In Assets Fail – Failed Banks For Year Total 157
December 18, 2010 By 2 Comments
The number of failed banks reached 157 as regulators closed six banks in Florida, Georgia, Arkansas and Minnesota. The six failed banks this week had a total of $1.2 billion in assets and resulted in a loss to the FDIC Deposit Insurance Fund of $267.6 million. The total loss to the depleted FDIC Deposit Insurance […]
Community National Bank, Lino Lakes, MN, Closed By Regulators
December 18, 2010 By 1 Comment
December 17, 2010 – Community National Bank, Lino Lakes, Minnesota, was closed today by The Office of the Comptroller of the Currency. The FDIC was appointed as receiver and sold the failed bank to Farmers & Merchants Savings Bank, Manchester, Iowa, which will assume all deposits of Community National. The two branches of Community National […]