August 19, 2010 – After another bad jobs report, President Obama called for an increase in lending to small businesses. According to the President, “Small businesses and community banks that loan to small businesses have been lagging behind. If we want this economy to create more jobs more quickly, we need to help them.” The […]
Bank Loan Demand Remains Weak As Consumers Repair Tattered Balance Sheets
August 18, 2010 By 1 Comment
August 19, 2010 – The latest Federal Reserve survey of bank lending practices showed a net modest easing in credit standards and terms in the second quarter. The slight loosening of credit standards, however, was not widespread. The Fed’s report noted that “While the survey results suggest that lending conditions are beginning to ease, the […]
Banking Failures Hit 25 States Across The Nation
August 13, 2010 By Leave a Comment
August 13, 2010 – Despite a nationwide drop in real estate values and all time high rates of mortgage defaults and foreclosures, 25 States have not had a banking failure in 2010. States that would seem to be obvious candidates for a large number of bank failures have actually experienced a small number of failures. […]
Bank Regulators Perplexed On How To Implement New Financial Regulations
August 13, 2010 By 1 Comment
August 13, 2010 – Congress quickly passed the massive 2,300 page Dodd-Frank Act which will profoundly reshape financial markets for years to come. Numerous federal regulators now have the immense job of writing hundreds of new regulations to enforce the bill’s sweeping mandates. Implementing and complying with the coming tidal wave of new regulations is […]
Are Retained Asset Accounts At Insurance Companies FDIC Insured?
August 11, 2010 By Leave a Comment
August 12, 2010 – The FDIC warned the insurance industry to properly disclose to consumers that Retained Asset Accounts (RAAs) are generally not insured by the FDIC Deposit Insurance Fund. Reacting to reports in the media that many customers believe that RAAs are FDIC insured, the FDIC sent a letter to the National Association of […]
Ravenswood Bank of Chicago Closed By State Of Illinois
August 6, 2010 By 4 Comments
August 6, 2010 – Ravenswood Bank, Chicago, Illinois, was closed today by the Illinois Department of Financial and Professional Regulation – Division of Banking. The FDIC was appointed as receiver and entered into an agreement with Northbrook Bank and Trust Company, Northbrook, Illinois, to take over the failed bank. All deposits of failed Ravenswood Bank […]
FDIC Sells Mortgage Backed Bonds – Is A Taxpayer Bailout Next?
August 1, 2010 By Leave a Comment
July 30, 2010 – The FDIC today raised $400 million by selling bonds backed by performing residential mortgages. The mortgages are part of $39 billion in assets acquired by the FDIC from failed banks (see FDIC’s Mountain Of Failed Bank Assets Grow). The securities are guaranteed by the FDIC and were sold at a coupon […]
Banking Failures Hit 103 As Regulators Close Seven More Banks
July 24, 2010 By Leave a Comment
July 23, 2010 – State and Federal regulators closed seven banks today as the banking industry continues to struggle with loan losses in a weak economy. At the current pace, the number of bank failures in 2010 may reach 200, compared to a total of 140 banking failures in 2009. In addition, the number […]
9,500 Uninsured Depositors Of Failed Banks To Be Reimbursed
July 22, 2010 By 1 Comment
The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama on July 21, 2010, permanently increases the deposit insurance limit to a maximum of $250,000. Deposit insurance limits had previously been temporarily increased from $100,000 to $250,000 effective from October 3, 2008, through December 31, 2010. The higher insurance coverage […]