July 30, 2010 – Five more banking institutions collapsed this week in Oregon, Washington, Florida and Georgia. Florida now leads the nation with 20 banking failures, followed by Illinois with 12. All five of this week’s failed banks were acquired by other banking institutions under purchase and assumption agreements with the FDIC acting as receiver. […]
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 […]
Over 600 Small Banks May Default On Bailout Loans
July 15, 2010 By Leave a Comment
July 15, 2010 – The Congressional Oversight Panel’s report on TARP loans to small banks has determined that many small banks may find it difficult or impossible to repay funds borrowed from the U.S. Treasury. The Treasury program to bailout banks, formally known as the Capital Purchase Program (CPP), was established during the height 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 […]
High Desert State Bank, Albuquerque, New Mexico, Fails
June 25, 2010 By Leave a Comment
June 25, 2010 – High Desert State Bank, Albuquerque, New Mexico became the nation’s 86th banking failure today as the New Mexico Financial Institutions Division closed the bank. The failed bank was acquired by First American Bank, Artesia, New Mexico under an agreement with the FDIC acting as receiver. High Desert State Bank’s web site […]
First National Bank, Savannah, Georgia, Closed By Regulators
June 25, 2010 By 1 Comment
June 25, 2010 – Troubled First National Bank, Savannah, Georgia, was closed today by the Comptroller of the Currency, which appointed the FDIC as receiver. Failed First National was acquired by The Savannah Bank, N.A., Savannah, GA, in a purchase and assumption agreement with the FDIC. All of First National’s deposits and “some” of the […]
Peninsula Bank, Englewood, FL Closed By Florida Regulators
June 25, 2010 By Leave a Comment
June 25, 2010 – Peninsula Bank, Englewood, Florida was closed today by the Florida Division of Financial Institutions, which appointed the FDIC as receiver. Florida now leads the nation with 14 banking failures. Illinois is a close second with 12 banking failures and Georgia has a total of 9. Peninsula Bank was acquired by Premier […]
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 […]
Fannie Mae Seeks To Limit Mortgage Losses On “Strategic Defaults”
June 23, 2010 By Leave a Comment
June 23, 2010 – Borrowers who chose to default on mortgages that they are capable of paying will be facing a long wait before they are able to own a home again under new Fannie Mae guidelines. The new rules come at a time when considerable attention is being focused on “strategic defaults” in which […]