In a speech given at the Brookings Institution, Brian Moynihan, CEO at Bank of America, said “We need to look hard at some of the old assumptions and ask the question is homeownership the right solution for everyone?” Moynihan went on to cite the Federal Housing Administration (FHA) as an example of what is wrong […]
FHA Loans Immediately Put Borrowers Into A Negative Equity Position
December 15, 2012 By Leave a Comment
Community Bank of the Ozarks, Sunrise Beach, MO, Closed By Regulators
December 14, 2012 By Leave a Comment
Community Bank of the Ozarks, Sunrise Beach, MO, was closed today by the Missouri Division of Finance, which named the FDIC as receiver. Community Bank of the Ozarks, which describes itself as a “strong, independent community bank” on its website, was buried under an avalanche of defaulted loans. At September 30, 2012, the Bank had […]
Tips On Saving and Managing Money For Young Adults – FDIC Consumer News
December 14, 2012 By Leave a Comment
Why do so many people make mistakes in handling money? The foundation to wealth rests upon sound principles for borrowing, saving and investing yet many Americans lack the fundamental knowledge necessary to accomplish their goals. According to the State of Working America, the median wealth for white households is only $97,000 and for black households […]
Fed Guarantees Bank Savers Negative Returns
December 13, 2012 By Leave a Comment
Anyone with savings in the bank is painfully aware of the fact that they are receiving only slightly more income than someone who keeps their savings under the mattress. In an attempt to stimulate credit demand by lowering interest rates to near zero, the Federal Reserve has effectively guaranteed negative returns to savers after taking […]
Housing Market Unlikely To Boost Economic Recovery In 2013
December 7, 2012 By 1 Comment
Although the economy grew in the third quarter, data continues to show a “sluggish recovery overall” according to Fannie Mae’s Economic & Strategic Research Group. Total growth in U.S. gross domestic product since the lows of 2009 has been 7.2% compared with average growth of 16% for previous economic recoveries since the 1960’s. Despite the […]
Owning Bank Stocks Might Be Better Than Keeping Cash In The Bank
December 6, 2012 By Leave a Comment
The financial meltdown that began five years ago resulted in widespread financial devastation for millions of Americans. Retirement and stock portfolios were decimated while real estate values declined by 50% or more in many parts of the country. The American middle class was shocked as trillions of dollars of wealth suddenly disappeared. The collapse of […]
Bank Earnings Soar To Six Year High But Bank Stocks Still Off 50% From Pre Crisis Levels
December 4, 2012 By Leave a Comment
According to the latest FDIC Quarterly Banking Profile, the banking industry recorded its 13th consecutive quarterly year-over-year increase in profits. Total net income for all FDIC-insured institutions rose to $37.6 billion in the third quarter of 2012, a 6.6% increase from the third quarter of last year. Most of the increase in net earnings were […]
Mortgage Borrowers Pay Thousands In Excess Fees Due To Complex Bank Pricing
December 3, 2012 By Leave a Comment
Few people wonder if they got the best price on that newly purchased 65” HDTV. Transparency in retail pricing through technological advances has enabled consumers to quickly locate the retailer selling a product at the lowest cost. A few quick clicks on the web or the use of price comparisons apps such as Amazon’s “Price […]
Banks Are Powerless Against The Biggest Threat To The Financial System
November 28, 2012 By Leave a Comment
Just when it appears that the banking system is beginning to stabilize, a new ominous threat to financial stability has become a serious concern among the nation’s top bankers. In a speech at a Berlin conference, Dennis Lockhart, President of the Federal Reserve Bank of Atlanta, talked about the serious threat of cyber attacks against […]
Hometown Community Bank, Georgia, Closed By Regulators
November 16, 2012 By 1 Comment
Hometown Community Bank, established at the peak of the real estate lending mania in 2005, was closed today by the Georgia Department of Banking and Finance. The FDIC, acting as receiver, protected depositors by selling the failed bank to CertusBank, National Association, Easley, South Carolina, which will assume all deposits of Hometown Community Bank. According […]