Regulators closed two banks in Minnesota and Georgia, bringing the total number of banking failures for the year to eleven. A total of four bank failures have now occurred in Minnesota and Georgia. During all of 2011 a total of only two banks failed in Minnesota. Georgia had a total of 23 bank failures during […]
Two Banks Fail In Minnesota and Georgia – FDIC Losses Hit $1 Billion
February 25, 2012 By Leave a Comment
Home Savings of America Collapses, FDIC Unable To Sell Bank – How Much Will Depositors Lose?
February 24, 2012 By 21 Comments
Home Savings of America, which was established during the depths of the Great Depression, was closed by regulators today. The Bank was established on September 1, 1934 and operated as a federally chartered stock savings and loan association, headquartered in Little Falls, Minnesota. According to Home Savings of America’s website, the Bank’s niche was serving […]
Central Bank of Georgia Fails After Serving Public For 102 Years
February 24, 2012 By Leave a Comment
Any bank that can last for 102 years deserves special recognition for surviving business panics, stock market crashes, world wars and economic depressions. The Central Bank of Georgia, Ellaville, GA, is in this category, having been established on September 16, 1910 and surviving until today when the Georgia Department of Banking and Finance closed the […]
FDIC Issues 42 Enforcement Actions Against Problem Banks In January
February 24, 2012 By Leave a Comment
The FDIC posted today the list of enforcement actions taken in January 2012 against problem banks. A total of 42 enforcements actions were taken in January compared to 57 in December. Enforcement actions for January included 13 consent orders, 11 civil money penalties, 5 prompt corrective actions and 7 orders to terminate consent orders and […]
Banks Tell 30 Million Troubled Customers To Get Lost – One In Three Consumers Now “Unbanked”
February 24, 2012 By Leave a Comment
How does the average consumer get by without a basic checking account? How does someone without a checking account pay the bills that arrive each month – drive around to each creditor and pay in cash? Where do you keep your savings – under the mattress or buried in the back yard? As incredible as […]
Why Bank Stocks Are Impossible To Analyze or Value
February 13, 2012 By Leave a Comment
During 2012, investor fears about the financial condition of banks resulted in the biggest decline in bank stocks since the financial crash of 2008. A weakening economy and fears about massive exposure to insolvent European financial institutions sent bank investors running to the exits. The brutal sell off in banking stocks during 2012 can be […]
SCB Bank of Indiana Fails Under Weight Of Bad Loans
February 10, 2012 By Leave a Comment
SCB Bank, Shelbyville, Indiana, was closed today by the Office of the Comptroller of the Currency,which appointed the FDIC as receiver. Acting as receiver, the FDIC sold the failed bank to First Merchants Bank, National Association, Muncie, Indiana. SCB Bank had been struggling under the weight of nonperforming loans since 2009. The Bank had a […]
Charter National Bank and Trust of Illinois Closed By Regulators
February 10, 2012 By Leave a Comment
Charter National Bank and Trust, Hoffman Estates, Illinois, was closed today by the Office of the Comptroller of the Currency, becoming the eight banking failure of 2012. Charter National, a small 32 year old community bank, became overwhelmed by bad loans after real estate prices began to collapse in 2008. The latest reports on Charter […]
Foreclosure Settlement Q&A – Who Wins, Who Loses – A Victory For The Irresponsible
February 10, 2012 By 4 Comments
A $25 billion foreclosure settlement reached between the government and the big banks has many wondering who will win and who will lose among the different parties involved. Although the settlement is complicated and will take years to work out, the basic framework will please some and annoy others. Here are some basic questions and […]
TARP Lives On – 370 Problem Banks Remain On U.S. Treasury Life Support
February 10, 2012 By Leave a Comment
The $700 billion Troubled Asset Relief Program (TARP) that was authorized in 2008 to bailout failing financial institutions is still in the process of being wound down. The latest report from the Government Accounting Office (GAO) (which is required by law to report on TARP every 60 days) reveals that the U.S. Treasury is still […]