September 9, 2010 – As if the Federal Deposit Insurance Corporation (FDIC) didn’t have enough issues to contend with, it now appears than criminals are impersonating the FDIC in an attempt to steal money or obtain sensitive financial information from consumers. The FDIC reports that it has received numerous reports of scam artists calling consumers and […]
Banking Giants Control 90% Of Industry Assets
September 6, 2010 By Leave a Comment
September 7, 2010 – The vast majority of banking industry assets are controlled by a small minority of large banking institutions. As the number of banks has declined sharply over the past twenty years (see US Loses 7,300 Banks), banking assets have been concentrated into the hands of the banking giants. Banks with more than $10 […]
Vanishing Banks – U.S. Loses 7,300 Banks Since 1990
September 4, 2010 By Leave a Comment
September 4, 2010 – The latest FDIC Quarterly Banking Profile reports that for the first time in almost ten years, the number of banks has declined by more than 100 in a single quarter. The number of banking institutions declined by 104 for the quarter ending June 30, the most since 113 in the third […]
FDIC Says Dodd-Frank Act Ends “Too Big To Fail” Era
September 3, 2010 By Leave a Comment
September 3, 2010 – FDIC Chairman Sheila Bair, in testimony before the Financial Crisis Inquiry Commission discussed how future systemic risks can be better managed and reduced under provisions of the Dodd-Frank Act. Chairman Bair also said that new liquidation authority under the Act is a fundamental factor that will allow the U.S. to end […]
US Asked To Bailout Foreign Bank
September 3, 2010 By Leave a Comment
September 3, 2010 – In an audacious request, a major shareholder of Afghanistan’s largest bank is asking the United States to provide funds to prevent the collapse of the Kabul Bank. According to the Wall Street Journal, a run on the Kabul Bank has brought the bank to the brink of insolvency. KABUL—A top shareholder […]
Should Banks Be Allowed To Resume Subprime Lending?
August 31, 2010 By Leave a Comment
As discussed in a previous post, based on the total number of Americans with a credit score of 649 or lower, up to 35% of all Americans are effectively locked out of the refinance or purchase mortgage market for the foreseeable future (see One Third of All Americans Unqualified). In the past, borrowers who did […]
FDIC Problem Bank Increase Puts Over 10% Of Banks At Risk Of Failure
August 31, 2010 By Leave a Comment
August 31, 2010 – The latest FDIC Quarterly Banking Profile shows a 7% increase in the number of Problem Banks to 829 at June 30, 2010, up from 775 at March 31, 2010. The number of problem banks is now at its highest level since March 1993 when there were 928. More than 10% of […]
FHFA Conservator’s Report – Why Fannie Mae And Freddie Mac Failed
August 30, 2010 By 2 Comments
August 30, 2010 – In 2008, Fannie Mae and Freddie Mac were on the verge of failure after an unprecedented decline in housing values triggered a subsequent wave of mortgage defaults. To avoid the total collapse of these two mortgage giants, the Federal Housing Finance Authority (FHFA) placed Fannie Mae and Freddie Mac under conservatorship […]
Delinquency Report Suggests Future Increase In Mortgage Defaults
August 27, 2010 By Leave a Comment
August 28, 2010 – The newly released Delinquencies and Foreclosure report by the Mortgage Bankers Association (MBA) largely mirrors the Federal Reserve Bank of New York’s quarterly report on household debt and credit. The mortgage delinquency rate for one to four unit residential properties decreased slightly to 9.85% and the percentage of loans in foreclosure […]
Can The Banking Industry Survive Another Five Years Of Declining Housing Values?
August 27, 2010 By Leave a Comment
The banking industry came close to collapse in 2008 as loan defaults surged and property values collapsed. Government intervention and successful efforts to raise additional capital by major banks have since stabilized the banking industry, despite a record high level of delinquencies (see Consumers Delinquent on $1.3 Trillion Of Debt). Where we go from here […]