November, 2010 – The FDIC recently released a list of orders of administrative enforcement actions taken against banks in October, including 1 cease and desist order, 16 consent orders (formerly called “cease and desist consent orders”), 18 civil money penalties and 1 Prompt Corrective Action. Formal enforcement actions are publicly disclosed by regulators and used […]
FDIC Problem Bank List Increases Again To Highest Level Since 1993
November 23, 2010 By Leave a Comment
November 23, 2010 – The third quarter 2010 FDIC Quarterly Banking Profile showed an increase in the number of Problem Banks from 829 to 860. The number of banks on the Problem Bank List now represents 11% of all FDIC insured institutions. Total assets of Problem Banks decreased slightly from $403 billion to $379 billion […]
Banking Failures In Wisconsin, Pennsylvania and Florida Bring Year’s Total To 149
November 19, 2010 By Leave a Comment
November 19, 2010 – Three additional banking failures this week brings the year’s total to 149 as regulators closed banks in Wisconsin, Pennsylvania and Florida. In 2009 a total of 140 banks were closed. This year has now seen the largest number of bank failures since 1992 when 181 banks were closed. During all of […]
90 Year Old First Banking Center, Burlington, WI, Closed By Regulators
November 19, 2010 By 2 Comments
November 19, 2010 – First Banking Center, Burlington, Wisconsin, was closed today by the Wisconsin Department of Financial Institutions, which appointed the FDIC as receiver. To protect depositors, the FDIC sold First Banking to First Michigan Bank, Troy, Michigan, which will assume all deposits and purchase all assets of failed First Banking. First Banking Center […]
FDIC Sells Failed Allegiance Bank of North America To Bank With Outstanding TARP Loan
November 19, 2010 By 1 Comment
Allegiance Bank of North America, Bala Cynwyd, Pennsylvania, was closed today by the Secretary of the Pennsylvania Department of Banking, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with VIST Bank, Wyomissing, PA, to assume all deposits and purchase all assets of failed Allegiance. Allegiance was a state-chartered […]
Gulf State Community Bank, Carrabelle, Florida, Fails Under Mountain Of Bad Loans
November 19, 2010 By Leave a Comment
Gulf State Community Bank, Carrabelle, Florida was closed today by the Florida Office of Financial Regulation, and the FDIC was named as receiver. Gulf State had been operating under an FDIC consent order issued November 20, 2009 which required the bank, among other things, to increase capital to adequate levels. Unable to comply with the […]
Fed Puts Bank Dividend Payments On Hold Until Capital Adequacy Tested
November 18, 2010 By Leave a Comment
November 17, 2010 – As anticipated, the Federal Reserve Board issued guidelines to the nation’s largest bank holding companies (BHCs) for evaluating plans to pay stock dividends or repurchase common stock. The Fed stated that the guidelines are a conservative approach to “ensure that the BHCs hold adequate capital to maintain ready access to funding, […]
Tougher Standards By Banks For Mortgage Approval Requires Credit Education
November 18, 2010 By Leave a Comment
November 18, 2010 – Several years ago, the mortgage underwriting standards of banks were so liberal that nearly anyone could get an approval, regardless of income levels or credit scores. The subsequent real estate crash and huge number of mortgage defaults since those easy lending days has resulted in much tougher underwriting standards. Many borrowers […]
Is Quantitative Easing A Bank Bailout? – What You Don’t Know Will Hurt You
November 16, 2010 By Leave a Comment
QE (quantitative easing) has arrived and will ultimately impact the financial well being of all Americans. Is it possible that something so profoundly disrupting to the financial world would go unnoticed by mainstream America? Is John Q Public indifferent or oblivious to the Fed implementing a reckless monetary policy previously reserved for banana republics? In […]
Warren Buffett Bullish On Wells Fargo – Stock Price Unchanged For 10 Years
November 16, 2010 By 1 Comment
If you want to invest in bank stocks, legendary Warren Buffett says buy Wells Fargo. Wells Fargo, the fourth largest bank holding company in the United States with $1.22 trillion dollars in assets emerged from the financial crisis in far better shape than many of its large competitors. The management team at Wells avoided high […]