Regulators closed two banks today, bringing the total number of banking failures for the year to 63. The FDIC classifies 888 banks as “Problem Banks”, a number which has risen nonstop since 2006. The number of troubled banks comprise almost 12% of all federally insured institutions. With many analysts forecasting another recession, a further increase […]
Feds Close Two Banks In Washington and Illinois – Depositor’s Concerns Grow
August 5, 2011 By Leave a Comment
S&P Downgrades US Debt – Feds Tell Banks US Securities Still “Riskless”
August 5, 2011 By Leave a Comment
The credit rating of the United States was downgraded for the first time in its history by Standard & Poor’s. The credit rating agencies had previously warned Congress that unless a credible deficit reduction plan was enacted, the United States could expect a downgrade. Standard & Poor’s reduced the US credit rating from AAA to […]
Bank of Shorewood, IL, Closed By Regulators
August 5, 2011 By 1 Comment
Bank of Shorewood, Illinois, which survived the high inflation of the 1980’s and the savings and loan disaster of the 1990’s, collapsed today under the weight of bad loans. The Bank was closed by state regulators who appointed the FDIC as receiver. The FDIC sold Bank of Shorewood to Heartland Bank and Trust of Bloomington, […]
One Georgia Bank of Atlanta Fails, Sold To Bank With Outstanding TARP Loans
July 15, 2011 By Leave a Comment
One Georgia Bank of Atlanta, Georgia, a $186 million dollar asset bank, was closed today by the Georgia Department of Banking and Finance. The FDIC, acting as receiver, sold the failed bank to Ameris Bank. One Georgia Bank has been effectively insolvent since late last year with a troubled asset ratio of 350% which is […]
Atlantic Bank and Trust, Charleston, SC, Becomes 45th Banking Failure
June 3, 2011 By Leave a Comment
The Atlantic Bank and Trust of Charleston, South Carolina, was closed today by the Office of Thrift Supervision, which appointed the FDIC as receiver. The FDIC sold the failed Bank to First Citizens Bank and Trust Company, Columbia, South Carolina, which will assume all deposits and purchase all assets of Atlantic Bank and Trust. Atlantic […]
FDIC Issues 87 Enforcement Actions Against Banks
May 4, 2011 By Leave a Comment
The FDIC issued 87 enforcement actions against problem banks and individuals in March, up from 60 in February. The administrative enforcement actions processed included 22 consent orders, 15 civil money penalties and 6 prompt corrective actions. Regulatory enforcement actions are issued to address serious deficiencies or when regulators have doubts about an institution’s ability to […]
The Reason Behind the Failure of “Well Capitalized” The First National Bank of Davis, OK
March 11, 2011 By 1 Comment
The closing of The First National Bank of Davis, Davis, Oklahoma, leaves depositors and local residents with many unanswered questions. The First National Bank of Davis has had a community presence for more than 100 years, having been established in 1895. The First National Bank maintained its sole branch in Davis and had $90.2 million […]
The FDIC Has A Problem With Bank Of America’s Proposed Dividend Increase
March 9, 2011 By 1 Comment
Speaking at Bank of America’s first investor conference since 2007, Chief Executive Brian Moynihan told shareholders that he was focused on increasing shareholder returns through share buybacks, special cash dividends and increased regular dividends. Mr. Moynihan also cheered investors on by predicting that Bank of America could earn, under normal business conditions, up to $40 […]
Big Banks Profit As Smaller Banks Join Problem Bank List
February 23, 2011 By Leave a Comment
According to the latest FDIC Quarterly Banking Profile (QBF), the industry recorded profits of $87.5 billion for 2010 compared to a full-year loss of $10.6 billion in 2009. While highlighting a general improvement, the QBF shows that the banking industry still faces major challenges. Revenue growth remains weak, loan balances declined for the ninth time […]