FDIC’s Increased Use Of Loss-Share Program Enriches Some At Taxpayers Expense The FDIC’s use of loss-sharing agreements has grown into a huge multi-billion dollar program that almost guarantees profits for the purchasers of failed banks. Originally introduced in 1991, loss-share agreements have now become a standard tool of the FDIC for moving failed bank assets […]
Bank Depositors May Need To Take “Prompt and Corrective Action” – Is Your Bank On This List?
June 25, 2010 By Leave a Comment
The Federal Deposit Insurance Corporation, the federal agency in charge of safeguarding the nation’s bank deposits, maintains a confidential Problem Bank List. This list contains the names of institutions that have weak capital positions caused by large loan losses or operational deficiencies that usually lead to failure. The FDIC does not publicize the list for […]
High Desert State Bank, Albuquerque, New Mexico, Fails
June 25, 2010 By Leave a Comment
June 25, 2010 – High Desert State Bank, Albuquerque, New Mexico became the nation’s 86th banking failure today as the New Mexico Financial Institutions Division closed the bank. The failed bank was acquired by First American Bank, Artesia, New Mexico under an agreement with the FDIC acting as receiver. High Desert State Bank’s web site […]
First National Bank, Savannah, Georgia, Closed By Regulators
June 25, 2010 By 1 Comment
June 25, 2010 – Troubled First National Bank, Savannah, Georgia, was closed today by the Comptroller of the Currency, which appointed the FDIC as receiver. Failed First National was acquired by The Savannah Bank, N.A., Savannah, GA, in a purchase and assumption agreement with the FDIC. All of First National’s deposits and “some” of the […]
Peninsula Bank, Englewood, FL Closed By Florida Regulators
June 25, 2010 By Leave a Comment
June 25, 2010 – Peninsula Bank, Englewood, Florida was closed today by the Florida Division of Financial Institutions, which appointed the FDIC as receiver. Florida now leads the nation with 14 banking failures. Illinois is a close second with 12 banking failures and Georgia has a total of 9. Peninsula Bank was acquired by Premier […]
FDIC Extends Guarantee On Transaction Account Balances
June 22, 2010 By Leave a Comment
June 22, 2010 – The FDIC Board of Directors extended the Transaction Account Guarantee (TAG) program six months beyond its original expiration to December 31, 2010. In addition, the Board approved for an additional extension, if deemed necessary, to December 31, 2011. The TAG program was initiated in October 2008 as part of the Temporary […]
Washington First International Bank, Seattle, WA Closed By State Regulators
June 11, 2010 By Leave a Comment
June 11, 2010 – The Washington Department of Financial Institutions closed today Washington First International Bank, Seattle, Washington. Washington First, a half billion dollar asset bank, became the nation’s 82 banking failure and the seventh in Washington state. Failed Washington First was acquired by East West Bank of Pasadena, CA in a purchase and assumption […]
FDIC Chairman Questions Government’s Obsession With Promoting Home Ownership
June 9, 2010 By 1 Comment
June 7, 2010 – In a speech given today, FDIC Chairman Sheila Bair questioned the wisdom of government policies that over-subsidize home ownership while devoting insufficient attention to the need for affordable rental housing. The Chairman noted that expansive public and private efforts to push homeownership to a record level of 69% ultimately proved to […]
Nebraska Rocked By Closing Of $3 Billion TierOne Bank, Lincoln, NE
June 4, 2010 By Leave a Comment
Shareholders Facing 100% Loss On Investment June 4, 2010 – Nebraska’s first bank closing of 2010 was the giant TierOne Bank of Lincoln, Nebraska. TierOne was one of the largest publicly held thrifts in the Midwest and had 69 branches located in Nebraska, Iowa and Kansas. According to the bank’s website, TierOne was originally organized […]
FDIC Finds No Buyer For Failed Arcola Homestead Savings of Illinois
June 4, 2010 By Leave a Comment
June 4, 2010 – Arcola Homestead Savings Bank, Arcola, IL became the 80th banking failure of 2010 after the bank was closed by the Illinois Department of Financial Professional Regulation. Illinois has now had 12 banking failures this year, trailing only Florida with 13 banking failures. The FDIC, appointed as receiver for the failed bank, […]