Regulators closed four banks in four different states this week. As has been typical for 2011, three of the failed banks were small or mid sized with total assets under $250. The largest bank failure of the week was Lydian Private Bank of Florida with $1.7 billion in assets, which became the fifth largest banking […]
Regulators Close Four Banks In Four States Bringing Total Bank Failures To 68
August 19, 2011 By Leave a Comment
Did Regulators Stop A Run on the Bank At Failed Public Savings Bank?
August 18, 2011 By 3 Comments
Regulators closed a small 83 year old bank today in an unusual Thursday afternoon closing. Traditionally, failed banks are closed by regulators at the close on business on Friday afternoon to minimize customer disruption. Was the unusual timing of the bank closing related to panicked depositors withdrawing money? Although the FDIC did not comment on […]
S&P Downgrades US Debt – Feds Tell Banks US Securities Still “Riskless”
August 5, 2011 By Leave a Comment
The credit rating of the United States was downgraded for the first time in its history by Standard & Poor’s. The credit rating agencies had previously warned Congress that unless a credible deficit reduction plan was enacted, the United States could expect a downgrade. Standard & Poor’s reduced the US credit rating from AAA to […]
Bank of Whitman, Colfax, WA, Closed By Regulators
August 5, 2011 By 1 Comment
Bank of Whitman, Colfax, Washington, was closed today by state banking regulators who appointed the FDIC as receiver. The failed bank was sold to Columbia State Bank which will assume all deposits of Bank of Whitman. Bank of Whitman, established in 1977, was an employee owned community bank with 20 branches and $548.6 million in […]
3 Failed Banks In Colorado and Illinois Cost FDIC $632 Million
July 8, 2011 By Leave a Comment
After taking off a week from bank closings due to the fourth of July holiday weekend, regulators came back to work, closing two banks in Colorado and one in Illinois. The largest banking failure of the week was the failure of First Chicago Bank & Trust with almost $1 billion in assets. The FDIC loss […]
Downward Spiral Of Bank Stocks Is Predicting An Economic Crisis
June 22, 2011 By 3 Comments
After rallying last fall, many of the big bank stocks have seen substantial declines from the beginning of the year. Growing fears about the health of the banking industry are discussed in the latest Economics and Mortgage Market Analysis issued by Fannie Mae. Fannie Mae cites a very weak housing market and an economic slowdown […]
Decade Low On Homeownership Rates Merely A Return To Normalcy
February 1, 2011 By Leave a Comment
The Census Bureau reports that the level of homeownership has declined to 66.5% for the last quarter of 2010. The number of Americans owning a home is now at the lowest level since 1998 when the rate of ownership was slightly lower at 66.4%. The lower rate of homeownership is not a disaster, as portrayed […]
Bailout Funds To Fannie and Freddie Come At High Cost
January 27, 2011 By Leave a Comment
Despite the public uproar over the bailout of the financial industry, the U.S. Treasury is no pushover when it comes to demanding stiff terms on its loans. The returns on some of the loans made to various banks and financial institutions would make a payday lender blush. For example, when the U.S. completes the sale […]
Housing Market On Critical List As Sales Plunge and Strategic Defaults Loom
January 27, 2011 By 2 Comments
The latest news on housing remains distressing and points to continued depreciation in home values. New Home Sales Plunge Again – The Census Bureau and the Department of Housing and Urban Development released figures showing that the number of new homes sold in 2010 totaled only 321,000 – the lowest reading in 47 years. The […]
Four Banking Failures In Four States Cost FDIC $455 Million
January 22, 2011 By Leave a Comment
January 21, 2010 – The FDIC, with a long list of 860 Problem Banks, was hit for $455 million in losses as four banks collapsed across four states. During 2010 a total of 157 banking failures occurred, the most since 1992 when 181 banks were closed. In 2009 a total of 140 banks were closed. […]