In a strongly worded speech at the Summit On Residential Mortgage Servicing For the 21st Century, FDIC Chief Sheila Bair condemned the mortgage servicing industry for their role in extending the mortgage crisis. Ms. Bair stated that the housing industry has been stabilized by emergency measures but that the effects of the housing bust and […]
FDIC Chief Condemns Mortgage Servicers While Ignoring FDIC Role In Mortgage Crisis
January 19, 2011 By 3 Comments
Impact Of Weak Housing Markets On Economy Overstated
January 19, 2011 By Leave a Comment
Many analysts believe that the overall economy cannot improve as long as residential housing prices remain weak and/or continue to decline. Schwab’s chief investment strategist, Liz Ann Sonders, who always provides incisive commentary, offers some compelling insights on why a weak housing market will not impede economic growth. In her latest commentary, Ms. Sonders says […]
Total Mortgage Debt Near All Time Highs
January 14, 2011 By Leave a Comment
The total amount of mortgage debt has not dramatically changed since the peak of the residential real estate boom. Mortgage debt hit an all time high of $14.6 trillion in 2008 as the biggest financial crisis in modern history was just getting underway. Considering the changes that have occurred in the banking and housing industry […]
Court Ruling Against Bank Foreclosures Could Spiral Into Full Blown Financial Crisis
January 12, 2011 By 4 Comments
The recent Massachusetts Supreme Court ruling against Wells Fargo and U.S. Bancorp is likely to bring foreclosures to a crawl, resulting in a further destabilizing of housing markets. The Court ruling is a major win for debtors and a severe blow for creditors trying to clear a backlog of millions of defaulted mortgages. The Massachusetts […]
157 Bank Failures In 2010 Highest Since 1992 – Why Next Year Will Be Worse
December 31, 2010 By Leave a Comment
December 31, 2010 – Banking failures for 2010 were at the highest level since 1992 as 157 financial institutions collapsed, the victims of collapsing real estate prices, a weak economy and poor lending decisions. The depth and breath of the current banking crisis makes the savings and loan crisis of the late 1980’s and early […]
Whitney National Bank Acquired By Hancock Holding As Banks Seek Profits Through Takeovers
December 23, 2010 By 1 Comment
December 22, 2010 – Besieged by slow loan growth, loan defaults and costly new regulations, the banking industry is turning to mergers and acquisitions to rebuild profits. In the latest wave of recent bank acquisitions, Hancock Holding Company and Whitney Holding Company announced that Whitney would merge into Hancock in a stock-for-stock transaction. Both banks […]
$2.3 Trillion In Uninsured Bank Deposits Cause For Concern
December 22, 2010 By Leave a Comment
December 22, 2010 – The latest FDIC Quarterly highlights the ongoing concern about the FDIC’s ability to protect depositors in the event of a large number of banking failures. Without the explicit backing of the FDIC by the US Treasury, the FDIC lacks the resources to adequately protect the $5.4 trillion in deposits that it […]
Banks May Be Facing A Tidal Wave Of Mortgage Defaults
December 14, 2010 By Leave a Comment
Although bank stocks have rallied recently, it may be premature to expect a recovery for the banking industry. There are multiple indicators that a housing recovery is little more than a distant dream and current trends suggest that mortgage defaults may increase substantially. With banks currently holding approximately $3 trillion dollars in residential mortgages, […]
90 Year Old First Banking Center, Burlington, WI, Closed By Regulators
November 19, 2010 By 2 Comments
November 19, 2010 – First Banking Center, Burlington, Wisconsin, was closed today by the Wisconsin Department of Financial Institutions, which appointed the FDIC as receiver. To protect depositors, the FDIC sold First Banking to First Michigan Bank, Troy, Michigan, which will assume all deposits and purchase all assets of failed First Banking. First Banking Center […]
Washington Mutual – Largest Banking Failure In History Turns Out Well For Many But Shareholders Left Fuming
November 9, 2010 By 23 Comments
The collapse of Washington Mutual Bank on September 25, 2008 is officially listed as the largest banking failure in history by the FDIC. The collapse of Washington Mutual occurred after nervous depositors withdrew $16.7 billion in the ten days prior to the bank’s collapse. Fearing a classic run on the bank situation and perhaps a […]