Nevada Commerce Bank, Las Vegas, Nevada, overwhelmed by loan defaults, was closed today by the Nevada Financial Institutions Division, which appointed the FDIC as receiver. The FDIC sold the failed bank to City National Bank, Los Angeles, CA, which will assume all deposits of the failed bank. The two branches of Nevada Commerce will reopen […]
2010 Banking Failures By State – Why 2011 Should Look The Same
March 26, 2011 By Leave a Comment
The most severe financial crisis since the 1930’s resulted in a nationwide drop in real estate values and the largest number of banking failures since 1992. The huge buildup of debt that fueled the bubble in real estate prices has resulted in a record number of mortgage defaults and foreclosures. During 2010, a total of […]
The Bank of Commerce, Wood Dale, IL, Becomes 26th Banking Failure of 2011
March 25, 2011 By Leave a Comment
The Bank of Commerce, Wood Dale, Illinois was closed today by the Illinois Department of Financial & Professional Regulation, which appointed the FDIC as receiver. The FDIC sold the failed bank to Advantage National Bank Group, Elk Grove Village, Illinois, which will assume all deposits and purchase all assets of The Bank of Commerce. The […]
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 […]
Who Is To Blame For Borrowers Taking Loans They Can’t Afford?
March 3, 2011 By Leave a Comment
Ever since the mortgage crisis started in 2008, there has been a wide divergence in opinions on who was to blame for borrower defaults. Many blame greedy bankers who abdicated sound underwriting principles for financial gain by approving mortgages for unqualified borrowers. Others blame the borrowers themselves for being irresponsible and taking on debt that […]
Valley Community Bank of Illinois Closed By Regulators
February 25, 2011 By Leave a Comment
Valley Community Bank, St. Charles, Illinois, joined the failed bank list today as the Illinois Department of Financial and Professional Regulation swooped in to close the bank. The FDIC was appointed as receiver to protect depositors and sold the failed bank to First State Bank, Mendota, Illinois, which will assume all deposits of Valley Community. […]
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 […]
Problem Banks Skyrocket To 18 Year High
February 23, 2011 By 1 Comment
The FDIC cannot close banks fast enough. The latest Quarterly Banking Profile shows an increase in the number of problem banks to 884 at December 31, 2010 up from 860 at the end of September 2010. The number of Problem Banks now totals 12% of all FDIC insured institutions. For the quarter ending December 31, […]
Four Banks Fail In Georgia and California
February 19, 2011 By 1 Comment
Four banking failures in Georgia and California have increased total banking failures for 2011 to 22. Small and mid sized banks continue to face the most difficulty as they find it impossible to raise additional capital required by regulators. During 2010 a total of 157 banking failures occurred, the most since 1992 when 181 banks […]