Banks Are A Financial Disaster For Both Shareholders And Depositors

In days gone by, shareholders of large banks viewed their investments as a source of income via dividends and potential capital gains via share appreciation.  In days gone by, depositors viewed banks as the safest place to harbor their hard earned dollars while earning a respectable amount of interest income. That was then, this is […]

Ridiculous Divergence Between Bank CEO Pay And Shareholder Returns

The wide divergence between bank CEO compensation and shareholder returns is an embarrassment to the capitalist notion of linkage between performance and pay. Shareholders of banking stocks have seen the value of their investments pulverized over the past four years as the banking industry struggles to recover from the lending excesses of previous years.  Shareholders […]

Banking Update – Daily Banking News

Welcome to Banking Update, a roundup of articles and news from around the internet. The FDIC settles a civil lawsuit against Washington Mutual executives for a fraction of the $900 million originally sought.  Virtually none of the settlement money came from the three WAMU executives but rather from insurance policies covering professional misconduct.  The three […]

Washington Mutual Soars 350% On Bankruptcy Exit Plan

The failure of Washington Mutual Bank on September 28, 2008 was the largest banking failure in U.S. history. After nervous depositors starting withdrawing billions of dollars, regulators feared that a run on the Bank would cause a nationwide panic and decided to close the bank.  The FDIC, acting as receiver, sold Washington Mutual to JP […]

$2.3 Trillion In Uninsured Bank Deposits Cause For Concern

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 […]

Washington Mutual – Largest Banking Failure In History Turns Out Well For Many But Shareholders Left Fuming

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 […]