In a recent interview with Forbes, FDIC Chairman Sheila Bair readily acknowledged that the primary reason for banking losses and failures was due to banks taking on excessive risk in their loan portfolios. Chairman Bair also discussed her ideas on regulatory changes that will prevent a future banking crisis, the health of the FDIC insurance […]
How Many Times Can A Failed Bank Be Rescued?
June 23, 2009 By Leave a Comment
TARP Funds Fail To Save Some Banks Most of the headline news on the banking industry centers on the largest banks paying back TARP funds previously received from the US Government. Less focus is being given to the numerous smaller banks in the country that received TARP money but apparently need additional bailout funds as […]
Failed Banks For June 19, 2009 – FDIC Losses Total $363 Million
June 20, 2009 By Leave a Comment
Failed Banks: Southern Community Bank, Cooperative Bank and First National Bank There were three more failed banks this week on June 19 – Southern Community Bank, Fayetteville, Georgia and Cooperative Bank, Wilmington, North Carolina and First National Bank of Anthony, Anthony, Kansas. 2009 has now seen a total of 15 more failed banks than occurred […]
Beware The Deceptively High CD Rate Offers
June 19, 2009 By Leave a Comment
FDIC Warns On Deceptive CD Rate Offers Due to the very low interest rate policies of the Federal Reserve, savers have been hammered into oblivion. Short term treasury securities with a one year maturity offer rates barely above zero. Banks are offering longer term CD rates that approach only a tiny 2% yield. Under such […]
FDIC Loan Guarantees To Banks Soars 54% – Is The TLGP Saving Problem Banks?
June 17, 2009 By Leave a Comment
FDIC Debt Guarantees Soar 54% From Year End 2008 The FDIC Temporary Loan Guarantee Program (TLGP) was instituted late last year. The program’s stated purpose and goals, according to the FDIC, is as follows: The FDIC has created this program to strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior […]
Sheila Bair Comments on Banks “Too Big To Fail”
June 17, 2009 By Leave a Comment
FDIC Chairman Sheila Bair Comments on Obama Administration’s Regualtory Reform The FDIC released Sheila Bair’s comments today regarding the new financial regulatory reform proposed by the Obama administration. FDIC Chairman Sheila C. Bair said, “I commend President Obama for his leadership on financial regulatory reform and his inclusive approach to policy development. There are key […]
FDIC Lists Root Cause For Failed Banks – Lax Regulation
June 16, 2009 By Leave a Comment
FDIC Supervisory Insights The FDIC released the Supervisory Insights report today, detailing the costs and causes of the banking crisis. It should not come as a surprise to anyone that the FDIC’s list of factors that caused the banking crisis center on the abandonment of traditional sound lending standards. The FDIC report does not struggle […]
“Many More Bank Failures” Expected By FDIC Chairman
June 15, 2009 By Leave a Comment
Financial Crisis Far From Over The former head of the FDIC, the late Bill Seidman, had recently predicted that as many as 500 additional banks could fail in 2009. Now the current head of the FDIC, Sheila Bair, in an interview with Forbes Magazine states that the financial crisis is far from over and that […]
Will Citigroup Wind Up On The Problem Bank List?
June 5, 2009 By 1 Comment
Despite Government Aid, Citi Still Lags The Wall Street Journal is reporting that earlier this year the FDIC had attempted to have Citigroup’s financial health rating lowered to the point that would have resulted in Citigroup being added to the Problem Bank List. By lowering the rating on Citigroup, regulators would have been able to […]
Why Savers Love Problem Banks
June 4, 2009 By Leave a Comment
FDIC Issues Rules For Less Than Well Capitalized Banks The FDIC has an internal list of 305 Problem Banks which they do not make public. In general, banks included on the list have series deficiencies with their finances, operations, or management that threaten their continued solvency. Once a bank is included on the list, they […]