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 […]
All American Bank, Des Plaines, IL, Closed By Regulators
October 28, 2011 By 1 Comment
All American Bank, Des Plaines, Illinois, was closed by the State of Illinois, which appointed the FDIC as receiver. The FDIC sold the failed bank to International Bank of Chicago. Under a purchase and assumption agreement, International Bank will assume all deposits and purchase all assets of failed All American Bank. All American Bank, established […]
Four Banks Closed In Georgia, Florida and Colorado – Losses Now Total $7 Billion
October 21, 2011 By Leave a Comment
The continued decline in real estate values and aggressive lending during the real estate boom continue to haunt the banking industry. Regulators closed four banks in three states this week bringing the total banking failures for the year to 84. Two banks were closed in Georgia which now accounts for 26% of all U.S. banking […]
Community Banks of Colorado Closed By Regulators
October 21, 2011 By Leave a Comment
Community Banks of Colorado, Greenwood Village, CO, was closed by the Board of Governors of the Federal Reserve System. The FDIC, appointed as receiver, sold the failed bank to Bank Midwest, N.A., Kansas City, Missouri. Bank Midwest will assume all deposits and purchase all assets of failed Community Banks. All 40 branches of failed Community […]
Community Capital Bank, Jonesboro, GA, Closed By Regulators
October 21, 2011 By Leave a Comment
State regulators closed Community Capital Bank of Jonesboro, GA, today and appointed the FDIC as receiver. The FDIC sold the failed bank to State Bank and Trust Company, Macon, GA, which will assume all deposits and purchase all assets of Community Capital Bank. Community Capital Bank began operations in August 2002. The Bank was owned […]
Decatur First Bank of Georgia Becomes 21st Banking Failure In Georgia
October 21, 2011 By Leave a Comment
Decatur First Bank, Decatur, Georgia, became the 21st bank to fail in Georgia this year. Georgia leads the nation in banking failures, accounting for 26% of all failed banks during 2011. A second Georgia bank, Community Capital Bank of Jonesboro, was also closed by regulators today. Georgia accounts for 22 of the nation’s 84 banking […]
Old Harbor Bank, Clearwater, FL, Closed By Regulators
October 21, 2011 By Leave a Comment
Old Harbor Bank of Clearwater, Florida, an eight year old community bank, was closed today by the Florida Office of Financial Regulation. The FDIC, appointed as receiver, sold the failed bank to 1st United Bank, Boca Raton, Florida. All seven branches of Old Harbor Bank will reopen on Saturday as branches of 1st United. Depositors […]
FDIC To Cover Losses On $75 Trillion Bank of America Derivative Bets
October 20, 2011 By 28 Comments
Potential losses on Bank of America’s massive $75 trillion book of risky derivative contracts has just been dumped onto the FDIC by the Federal Reserve. Derivatives, once described by Warren Buffet as “financial weapons of mass destruction” are complex contracts entered into for speculation or to hedge risks linked to a wide variety of other […]