July 14, 2010 – Banking regulators agreed to give the FDIC expanded authority to conduct examinations of insured depository institutions that the FDIC does not directly supervise, under a new memorandum of understanding (MOU). The FDIC’s position is that it should have more than “backup authority” and be allowed to take a more active on-site […]
Four Banks Closed In Maryland, New York And Oklahoma
July 9, 2010 By Leave a Comment
July 9, 2010 – Regulators closed four banks today – two in Maryland and one in New York and Oklahoma. The four banks had a total of 19 branches and $1.1 billion in assets. The estimated loss to the FDIC Deposit Insurance Fund for the four banking failures amounted to $159.9 million. Three of the […]
Negative Equity Causes Half Of All Mortgage Defaults
June 29, 2010 By Leave a Comment
June 29, 2010 – Anecdotal evidence has been suggesting for some time that many mortgage borrowers will deliberately chose to default when the mortgage exceeds the value of the property. Empirical research released by the Federal Reserve Board now shows exactly how big a problem strategic mortgage defaults have become for the banking industry. The […]
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 […]
Government’s Effort To Stop Soaring Mortgage Defaults A Failure
June 24, 2010 By 1 Comment
Mortgage Delinquencies and Foreclosures Continue To Soar The record high rate of mortgage delinquencies and foreclosures remains the banking industry’s biggest obstacle towards financial recovery. The horrific statistics for the first quarter on mortgage defaults provides little reason to believe that the housing crisis will end anytime soon. The delinquency rate for all mortgages on […]
Record High Delinquency Rates On Commercial Loans Stress Banks
June 24, 2010 By 1 Comment
June 24, 2010 – Commercial and multifamily delinquencies continued to increase in the first quarter of 2010 according to a report by the Mortgage Bankers Association. According to Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research, “Weakness in the economy has continued to weigh on commercial properties, which in turn weighs on the […]
FDIC Deposit Insurance Fund To Remain Underfunded Until 2017
June 22, 2010 By Leave a Comment
The FDIC estimated today that the FDIC Deposit Insurance Fund (DIF), which protects depositors in the case of banking failures, will not return to the statutory minimum level required until the first quarter of 2017. The largest number of banking failures in twenty years has depleted the DIF, even after the FDIC collected $46 billion […]
Banking Regulators Say Banks Encouraged “Imprudent Risks” With Flawed Pay Incentives
June 21, 2010 By Leave a Comment
Regulators Tell Bankers That Pay Should Be “Risk Adjusted” June 21, 2010 – The nation’s top banking regulators today moved to curb flawed incentive compensation plans that encouraged banking employees to take imprudent risks. Citing pay practices that contributed to the recent financial crisis, regulators issued financial institutions final guidance to ensure that incentive compensation […]
Nevada Security Bank Closed By Regulators
June 18, 2010 By 4 Comments
June 18, 2010 – Nevada saw its third banking failure of 2010 with the closing of Nevada Security Bank, Reno, Nevada. Failed Nevada Security was acquired by Umpqua Bank of Roseburg, Oregon, in a purchase and assumption transaction with the FDIC. Since the FDIC was able to find a buyer for Nevada Security Bank, all […]