Banking Failures – 98 And Counting 2009 has now seen a total of 73 more failed banks than occurred for all of 2008. The latest banking closures bring total banking failures for 2009 to 98. The latest three failed bank on October 2, 2009 had total assets of $634 million and total losses to the […]
Three Failed Banks For October 2, 2009 – Warren Bank Example Of Regulatory Failure
October 2, 2009 By 1 Comment
IMF Predicts Banking Losses of $2.8 Trillion
October 1, 2009 By Leave a Comment
The International Monetary Fund’s latest Global Financial Stability Report (GFSR) predicts additional trillions of dollars in bank losses and warns that there is still a significant risk of another economic downturn. In addition, massive public deficits may crowd out private borrowers, increasing the difficulty of financial institutions to raise needed capital. José Viňals, Director of […]
Regulators Admit To Huge Decline In Loan Credit Quality
October 1, 2009 By Leave a Comment
No End In Sight To Debt Defaults The extent of the continued severe deterioration in loan credit quality was revealed in the Shared National Credits Review, issued jointly by the Federal Reserve, FDIC, Office of the Comptroller of the Currency and the Office of Thrift Supervision. Credit quality declined sharply The credit risk of these […]
Troubled Asset Ratio Good Predictor Of Failed Banks
October 1, 2009 By Leave a Comment
Many Bank Failures Easy To Predict Evaluating the financial health of a bank is a complex process which requires an in depth analysis of a bank’s financial statements. Most bank depositors would be ill equipped to assess whether or not a particular bank might be in financial difficulty. There is, however, one simple concept […]
FDIC To Bolster Insurance Fund With Prepaid Bank Assessments
September 29, 2009 By Leave a Comment
FDIC To Increase DIF By $45 Billion The FDIC announced today a proposal to increase the deposit insurance fund (DIF) by requiring financial institutions to prepay three years of assessments. The collection of prepaid assessments will allow the FDIC to cover the cost of future banking failures without tapping their credit line with the US […]
FDIC Seeks To Avoid Treasury Bailout
September 29, 2009 By Leave a Comment
The FDIC Board of Directors will meet today to discuss the Deposit Insurance Fund Restoration Plan, assessments and funding. As the number of banking failures continues to increase, it has become obvious that the current amount of reserves ($10.4 billion) in the FDIC deposit insurance fund (DIF) are totally inadequate to cover expected FDIC losses […]
Regulators Were Blind To Risk In Biggest U.S. Banking Failure
September 29, 2009 By Leave a Comment
The most expensive banking failure in U.S. history was the closure of IndyMac Bank in July 2008. The original estimated loss to the FDIC of $8.9 billion has recently been increased to $10.7 billion or 33% of IndyMac’s assets at the time of closure. The story of how IndyMac Bank was allowed by regulators […]
FDIC Loan Guarantees Under TLGP Decline Again For August 2009
September 27, 2009 By Leave a Comment
FDIC Debt Guarantees Decline 4% In August The FDIC Temporary Loan Guarantee Program (TLGP) was instituted late last year. The program’s stated purpose and goals, according to the FDIC, is as follows: The FDIC has created this program to strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior unsecured debt […]
One Failed Bank For September 25, 2009
September 27, 2009 By Leave a Comment
Banking Failures – 95 And Counting 2009 has now seen a total of 70 more failed banks than occurred for all of 2008. The latest banking closure brings total banking failures for 2009 to 95. The latest failed bank on September 25, 2009 had total assets of $2 billion and total losses to the FDIC […]