September 10, 2010 – Horizon Bank, Bradenton, Florida, was closed by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks, Little Rock, Arkansas, to assume all of the deposits and essentially […]
Banking Giants Control 90% Of Industry Assets
September 6, 2010 By Leave a Comment
September 7, 2010 – The vast majority of banking industry assets are controlled by a small minority of large banking institutions. As the number of banks has declined sharply over the past twenty years (see US Loses 7,300 Banks), banking assets have been concentrated into the hands of the banking giants. Banks with more than $10 […]
FDIC Says Dodd-Frank Act Ends “Too Big To Fail” Era
September 3, 2010 By Leave a Comment
September 3, 2010 – FDIC Chairman Sheila Bair, in testimony before the Financial Crisis Inquiry Commission discussed how future systemic risks can be better managed and reduced under provisions of the Dodd-Frank Act. Chairman Bair also said that new liquidation authority under the Act is a fundamental factor that will allow the U.S. to end […]
FDIC Problem Bank Increase Puts Over 10% Of Banks At Risk Of Failure
August 31, 2010 By Leave a Comment
August 31, 2010 – The latest FDIC Quarterly Banking Profile shows a 7% increase in the number of Problem Banks to 829 at June 30, 2010, up from 775 at March 31, 2010. The number of problem banks is now at its highest level since March 1993 when there were 928. More than 10% of […]
FHFA Conservator’s Report – Why Fannie Mae And Freddie Mac Failed
August 30, 2010 By 2 Comments
August 30, 2010 – In 2008, Fannie Mae and Freddie Mac were on the verge of failure after an unprecedented decline in housing values triggered a subsequent wave of mortgage defaults. To avoid the total collapse of these two mortgage giants, the Federal Housing Finance Authority (FHFA) placed Fannie Mae and Freddie Mac under conservatorship […]
Can The Banking Industry Survive Another Five Years Of Declining Housing Values?
August 27, 2010 By Leave a Comment
The banking industry came close to collapse in 2008 as loan defaults surged and property values collapsed. Government intervention and successful efforts to raise additional capital by major banks have since stabilized the banking industry, despite a record high level of delinquencies (see Consumers Delinquent on $1.3 Trillion Of Debt). Where we go from here […]
One Third Of All Americans Unqualified For A Mortgage
August 24, 2010 By Leave a Comment
August 24, 2010 – According to research from Deutsche Bank, the number of Americans with credit scores below 600 has increased to 26% from only 15% prior to the start of the recession. Further examination of credit data reveals that 9% of all Americans have a credit score in the 600-649 range. Based on current […]
Consumers Delinquent On $1.3 Trillion Of Debt
August 23, 2010 By Leave a Comment
August 23, 2010 – Banks nationwide have seen a staggering increase in delinquencies and nonperforming loans as the result of a severe economic recession and housing collapse. Although delinquency rates and defaults are still at horrendous levels, the Federal Reserve Bank of New York’s quarterly report on household debt and credit offers hope that defaults […]