An Illinois bank that still owed $4 million to the U.S. Treasury under the TARP program was closed today in Illinois. Country Bank, Aledo, IL, was closed by state regulators who appointed the FDIC as receiver. The failed bank was sold by the FDIC to Blackhawk Bank & Trust, Milan, IL, which will assume all […]
First State Bank, Cranford, NJ, Closed By Regulators – First New Jersey Bank Failure of 2011
October 14, 2011 By Leave a Comment
New Jersey saw its first banking failure of 2011 as regulators closed a quarter billion dollar banking institution. First State Bank, Cranford, New Jersey, was closed today by the NJ Department of Banking, which appointed the FDIC as receiver. The failed Bank was sold to Northfield Bank, Staten Island, New York, which will assume all […]
Blue Ridge Savings Bank, Asheville, NC, Closed By Regulators
October 14, 2011 By Leave a Comment
Blue Ridge Savings Bank, founded in 1978, was closed today by the North Carolina Office of Commissioner of Banks, which appointed the FDIC as receiver. The FDIC sold the failed bank to Bank of North Carolina, Thomasville, NC, which will assume all deposits of Blue Ridge Savings. All ten branches of Blue Ridge will reopen […]
Piedmont Community Bank of Georgia Fails, Taken Over By State Bank and Trust Co
October 14, 2011 By Leave a Comment
Georgia, the state with the most banking failures for 2011, saw another banking failure today with the closing of Piedmont Community Bank. The failure of Piedmont becomes the 20th banking failure of the year in Georgia, which now accounts for 26% of all bank failures in 2011. The Georgia Department of Banking, which closed Piedmont […]
FDIC Forecasts $19 Billion In Losses On Banking Failures – Why The Losses Will Be Five Times Larger
October 11, 2011 By 4 Comments
The FDIC today released an update on expected losses for banking failures through 2015. For the five year period 2011 through 2015 the FDIC is forecasting total losses from banking failures of $19 billion. Total losses from banking failures during 2010 were $23 billion compared to $6.4 billion in 2011 year to date losses. A […]
The RiverBank, Wyoming, Minnesota, Fails After 114 Years
October 7, 2011 By Leave a Comment
The River Bank, Wyoming, Minnesota, was closed today by the Minnesota Department of Commerce. The FDIC was appointed as receiver and sold the failed bank to Central Bank, Stillwater, MN. All deposits of The River Bank will be assumed by Central Bank. The River Bank was originally founded as The Bank of Osceola by businessman […]
Global Financial System Faces Worldwide Bank Runs and Failures, Citigroup’s $300 Billion Problem
October 5, 2011 By Leave a Comment
Three years after the height of the financial crisis, the issue of impaired assets on bank balance sheets remains a major risk to the health of the banking system. Regulators have allowed banks to avoid taking losses on impaired assets by not requiring mark to market accounting. The extent of overvaluation on bank loans can […]
Patriot Bank of Georgia Closed By Regulators
September 3, 2011 By Leave a Comment
Patriot Bank of Georgia, Cumming, GA, was closed by state regulators who appointed the FDIC as receiver. Patriot Bank had a very short life span, having been established only in July 2006 at the peak of the real estate mania. The failed bank was sold by the FDIC to Georgia Commerce Bank, Atlanta, GA, which […]
FDIC Reports Decline In Problem Banks But Banking Industry Remains In Intensive Care
August 23, 2011 By Leave a Comment
The latest FDIC Quarterly Banking Profile shows a negligible decline in problem banks but the banking industry remains in intensive care. The banking industry reported a $28.8 billion profit for the second quarter which was $7.9 billion higher than last year’s quarter ending June 30, 2010. The bulk of the profit improvement, however, came from […]