September 15, 2010 – Defaulted mortgage loans sold to Fannie Mae and Freddie Mac during the peak years of the mortgage boom are now resulting in billion dollar losses for some of the largest banks in the country. Fannie Mae and Freddie Mac, now under the conservatorship of the Federal Housing Finance Agency (FHFA), are […]
Government Requests Banks To Buyback $30 Billion Of Defaulted Mortgages
September 15, 2010 By Leave a Comment
Future Banking Industry Losses On Bad Loans Estimated At $268 Billion
September 14, 2010 By Leave a Comment
September 14, 2010 – Despite the fact that banks have already taken huge losses on bad loans, Moody’s Investor Service estimates that the US banking industry still needs to recognize an additional $268 billion in losses on defaulted loans. According to Moody’s, banks will write off a total of $744 billion in bad loans through […]
Horizon Bank, Bradenton, FL, Closed By Regulators
September 10, 2010 By 2 Comments
September 10, 2010 – Horizon Bank, Bradenton, Florida, was closed by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks, Little Rock, Arkansas, to assume all of the deposits and essentially […]
Identity Thieves Impersonate FDIC To Steal Money
September 9, 2010 By Leave a Comment
September 9, 2010 – As if the Federal Deposit Insurance Corporation (FDIC) didn’t have enough issues to contend with, it now appears than criminals are impersonating the FDIC in an attempt to steal money or obtain sensitive financial information from consumers. The FDIC reports that it has received numerous reports of scam artists calling consumers and […]
Banking Giants Control 90% Of Industry Assets
September 6, 2010 By Leave a Comment
September 7, 2010 – The vast majority of banking industry assets are controlled by a small minority of large banking institutions. As the number of banks has declined sharply over the past twenty years (see US Loses 7,300 Banks), banking assets have been concentrated into the hands of the banking giants. Banks with more than $10 […]
Vanishing Banks – U.S. Loses 7,300 Banks Since 1990
September 4, 2010 By Leave a Comment
September 4, 2010 – The latest FDIC Quarterly Banking Profile reports that for the first time in almost ten years, the number of banks has declined by more than 100 in a single quarter. The number of banking institutions declined by 104 for the quarter ending June 30, the most since 113 in the third […]
FDIC Says Dodd-Frank Act Ends “Too Big To Fail” Era
September 3, 2010 By Leave a Comment
September 3, 2010 – FDIC Chairman Sheila Bair, in testimony before the Financial Crisis Inquiry Commission discussed how future systemic risks can be better managed and reduced under provisions of the Dodd-Frank Act. Chairman Bair also said that new liquidation authority under the Act is a fundamental factor that will allow the U.S. to end […]
US Asked To Bailout Foreign Bank
September 3, 2010 By Leave a Comment
September 3, 2010 – In an audacious request, a major shareholder of Afghanistan’s largest bank is asking the United States to provide funds to prevent the collapse of the Kabul Bank. According to the Wall Street Journal, a run on the Kabul Bank has brought the bank to the brink of insolvency. KABUL—A top shareholder […]
Should Banks Be Allowed To Resume Subprime Lending?
August 31, 2010 By Leave a Comment
As discussed in a previous post, based on the total number of Americans with a credit score of 649 or lower, up to 35% of all Americans are effectively locked out of the refinance or purchase mortgage market for the foreseeable future (see One Third of All Americans Unqualified). In the past, borrowers who did […]
FDIC Problem Bank Increase Puts Over 10% Of Banks At Risk Of Failure
August 31, 2010 By Leave a Comment
August 31, 2010 – The latest FDIC Quarterly Banking Profile shows a 7% increase in the number of Problem Banks to 829 at June 30, 2010, up from 775 at March 31, 2010. The number of problem banks is now at its highest level since March 1993 when there were 928. More than 10% of […]