FDIC Chairman Sheila Bair Comments on Obama Administration’s Regualtory Reform The FDIC released Sheila Bair’s comments today regarding the new financial regulatory reform proposed by the Obama administration. FDIC Chairman Sheila C. Bair said, “I commend President Obama for his leadership on financial regulatory reform and his inclusive approach to policy development. There are key […]
FDIC Lists Root Cause For Failed Banks – Lax Regulation
June 16, 2009 By Leave a Comment
FDIC Supervisory Insights The FDIC released the Supervisory Insights report today, detailing the costs and causes of the banking crisis. It should not come as a surprise to anyone that the FDIC’s list of factors that caused the banking crisis center on the abandonment of traditional sound lending standards. The FDIC report does not struggle […]
How Georgia Became The Failed Bank Capital Of The U.S.
June 15, 2009 By Leave a Comment
California, Florida and Arizona are widely known to have had the most dramatic property declines since housing starting crashing in 2005. Logically, one would assume that the majority of banking failures occurred in these three States, but that is not the case as can be seen below. 2008-2009 Banking Failures State Number of Failed Banks […]
“Many More Bank Failures” Expected By FDIC Chairman
June 15, 2009 By Leave a Comment
Financial Crisis Far From Over The former head of the FDIC, the late Bill Seidman, had recently predicted that as many as 500 additional banks could fail in 2009. Now the current head of the FDIC, Sheila Bair, in an interview with Forbes Magazine states that the financial crisis is far from over and that […]
Will Citigroup Wind Up On The Problem Bank List?
June 5, 2009 By 1 Comment
Despite Government Aid, Citi Still Lags The Wall Street Journal is reporting that earlier this year the FDIC had attempted to have Citigroup’s financial health rating lowered to the point that would have resulted in Citigroup being added to the Problem Bank List. By lowering the rating on Citigroup, regulators would have been able to […]
Failed Banks For June 5, 2009
June 5, 2009 By Leave a Comment
Failed Bank: Bank of Lincolnwood, Lincolnwood, Illinois There was one more failed bank this week on June 5 – Bank of Lincolnwood, Lincolnwood, IL. The last two banking failures occurred on May 22, 2009. There have now been 12 more banking failures in 2009 than occurred for all of 2008. The FDIC closure of the […]
Why Savers Love Problem Banks
June 4, 2009 By Leave a Comment
FDIC Issues Rules For Less Than Well Capitalized Banks The FDIC has an internal list of 305 Problem Banks which they do not make public. In general, banks included on the list have series deficiencies with their finances, operations, or management that threaten their continued solvency. Once a bank is included on the list, they […]
Answers To Common Questions By Depositors When A Bank Fails: One Answer That May Surprise You
June 4, 2009 By 4 Comments
Common Questions By Failed Bank Customers The closing of a failed bank is usually a routine event but most people will have questions about how the closing of their bank will affect them. Many people, for example, may be surprised when they find out how the interest rate on their savings can change when a […]
What Should I Do When My Bank Fails?
June 4, 2009 By 3 Comments
Facts For Depositors When A Bank Fails The former head of the FDIC has predicted that up to 500 banks will fail this year and the FDIC has 305 banks on it Problem Bank List. The average depositor usually has no way to determine if his bank will fail. Given these circumstances, it is important […]
Should I Buy A CD From A Problem Bank?
May 27, 2009 By Leave a Comment
Safety First For Savings The highest rate certificates of deposit (CD) are usually offered by banks that may be on the FDIC Problem Bank List. A troubled bank usually has difficulty attracting deposits due to the risk of a banking failure and is therefore forced to offer a higher CD rate to attract funds – […]