The European banking crisis continues to spiral out of control while hapless politicians fail to put together a credible resolution plan. Part of the problem may be that it is difficult to construct a solution when failing banks are bigger than the countries that are trying to rescue them. The latest European bank on the […]
Who Will Rescue Collapsing European Banks When Banks Are Bigger Than Countries?
October 6, 2011 By Leave a Comment
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 […]
First International Bank, Plano, Texas, Closed By Regulators
September 30, 2011 By 1 Comment
The first bank failure in the state of Texas occurred today when the Texas Department of Banking closed First International Bank, Plano, Texas. The FDIC, appointed as receiver for the failed bank, sold First International to American First National Bank of Houston, Texas. Ironically, First International Bank’s origins were based on a failed bank. First […]
FDIC Issues 53 August Enforcement Actions On Problem Banks
September 30, 2011 By Leave a Comment
The FDIC issued a list of 53 administrative enforcement actions taken in August against problem banks and individuals. Among the enforcement actions issued were 11 consent orders, 14 civil money penalties, 1 prompt corrective action and 17 orders terminating previous prompt corrective action directives, consent orders and cease and desist orders. Please see complete list […]
Citizens Bank of Northern California Closed By Regulators
September 23, 2011 By Leave a Comment
Citizens Bank of Northern California, Nevada City, CA, founded in 1995, was closed today by the California Department of Financial Institutions. The FDIC, acting as receiver, sold the failed bank to Tri Counties Bank, Chico, CA. Citizens Bank had seven branches which will reopen on Monday as branches of Tri Counties Bank. Depositors of failed […]
Bank of the Commonwealth, Norfolk, VA, Closed By Regulators
September 23, 2011 By 1 Comment
Bank of the Commonwealth, Norfolk, Virginia, founded in 1970, was closed today by the Virginia State Corporation Commission. The FDIC, acting as receiver, sold the failed bank to Southern Bank and Trust Company of Mount Olive, North Carolina. Bank of the Commonwealth had a total of 21 branches with 17 operating in Virginia and 4 […]
European Banking Crisis Spins Out Of Control – Officials Have No Solutions
September 12, 2011 By 1 Comment
The European banking crisis intensified as the threat of debt default contagion spread across Europe. What was once a “Greek” problem has quickly overwhelmed all of Europe, resulting in a broad sell of equities and frozen credit markets. Bloomberg reports that European banks are now being valued at levels last seen during the worst of […]
Will The Run On Greek Banks Spread Across Europe?
September 10, 2011 By 1 Comment
With the interest rate on short term Greek government debt approaching 100%, markets are saying that default by Greece is inevitable. Greece is expected to run out of cash within weeks and massive civil unrest may slide into anarchy as protests become increasingly violent. The bailout by the European Union that was supposed to save […]
The First National Bank of Florida Acquired By CharterBank of Georgia
September 9, 2011 By Leave a Comment
September 9, 2011 – The First National Bank of Florida, Milton, Florida, became the nation’s 71st banking failure. The Bank was closed by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver. Founded in 1984, The First National Bank of Florida was an 8 branch, independent community bank which served […]
CreekSide Bank of Georgia Closed By Regulators
September 3, 2011 By Leave a Comment
CreekSide Bank, Woodstock, Georgia, was closed today by state regulators who appointed the FDIC as receiver. The failed bank was sold by the FDIC to Georgia Commerce Bank which will assume all deposits of the failed bank. Creekside Bank was very similar to Patriot Bank, the second Georgia bank closed by regulators today. Both banks […]