The FDIC issued 60 enforcement actions against problem banks in February, down slightly from 61 in January. Among the more serious administrative enforcement actions processed were 22 consent orders, 13 civil money penalties and 7 prompt corrective actions. The FDIC and other regulators use enforcement actions to address serious deficiencies and when there is regulatory […]
The Bank of Commerce, Wood Dale, IL, Becomes 26th Banking Failure of 2011
March 25, 2011 By Leave a Comment
The Bank of Commerce, Wood Dale, Illinois was closed today by the Illinois Department of Financial & Professional Regulation, which appointed the FDIC as receiver. The FDIC sold the failed bank to Advantage National Bank Group, Elk Grove Village, Illinois, which will assume all deposits and purchase all assets of The Bank of Commerce. The […]
The First National Bank of Davis and Legacy Bank Closed By Regulators
March 11, 2011 By 1 Comment
Two banking failures in Oklahoma and Wisconsin have raised the number of banking failures for 2010 to 25. Most of the banking failures this year have been smaller banking institutions that cannot raise capital or compete with larger banks. Banking failures have increased steadily since 2007 as a tidal wave of defaulting loans and plunging […]
Legacy Bank, Milwaukee, WI, Becomes 25th Bank Failure
March 11, 2011 By Leave a Comment
The Wisconsin Department of Financial Institutions closed the Legacy Bank of Milwaukee, WI, today and appointed the FDIC as receiver. The FDIC was able to sell the bank to Seaway Bank and Trust Company, Chicago, IL, which assumed all deposits of the failed bank. Depositors of Legacy have full access to their money over the […]
The Reason Behind the Failure of “Well Capitalized” The First National Bank of Davis, OK
March 11, 2011 By 1 Comment
The closing of The First National Bank of Davis, Davis, Oklahoma, leaves depositors and local residents with many unanswered questions. The First National Bank of Davis has had a community presence for more than 100 years, having been established in 1895. The First National Bank maintained its sole branch in Davis and had $90.2 million […]
The FDIC Has A Problem With Bank Of America’s Proposed Dividend Increase
March 9, 2011 By 1 Comment
Speaking at Bank of America’s first investor conference since 2007, Chief Executive Brian Moynihan told shareholders that he was focused on increasing shareholder returns through share buybacks, special cash dividends and increased regular dividends. Mr. Moynihan also cheered investors on by predicting that Bank of America could earn, under normal business conditions, up to $40 […]
Counterfeit Checks Among Top Ten Consumer Complaints To FTC
March 8, 2011 By Leave a Comment
That official looking bank check you receive in return for the sale of goods or services might actually be worthless. The con men and criminals producing counterfeit bank checks has prompted the FDIC to issue numerous warnings about specific banks that have reported counterfeit checks drawn in their name. The FDIC has noticed explosive growth […]
Who Is To Blame For Borrowers Taking Loans They Can’t Afford?
March 3, 2011 By Leave a Comment
Ever since the mortgage crisis started in 2008, there has been a wide divergence in opinions on who was to blame for borrower defaults. Many blame greedy bankers who abdicated sound underwriting principles for financial gain by approving mortgages for unqualified borrowers. Others blame the borrowers themselves for being irresponsible and taking on debt that […]
Valley Community Bank of Illinois Closed By Regulators
February 25, 2011 By Leave a Comment
Valley Community Bank, St. Charles, Illinois, joined the failed bank list today as the Illinois Department of Financial and Professional Regulation swooped in to close the bank. The FDIC was appointed as receiver to protect depositors and sold the failed bank to First State Bank, Mendota, Illinois, which will assume all deposits of Valley Community. […]