The smallest bank failure of the year occurred today as regulators shuttered the Gold Canyon Bank, Gold Canyon, Arizona. After closing Gold Canyon Bank, state regulators appointed the FDIC as receiver which entered into a purchase and assumption agreement with First Scottsdale Bank, N.A., Scottsdale, AZ All deposits of failed Gold Canyon will be assumed […]
Mobile Banking Rapidly Expands
March 28, 2013 By Leave a Comment
The evolution of internet based services has transformed the banking industry. The combination of online banking services and the proliferation of smart phones now makes is possible to conduct just about any banking transaction without ever having to physically step into a brick and mortar bank branch. In a report released by the Federal Reserve, […]
What a Collapsed Banking System Looks Like
March 23, 2013 By Leave a Comment
In the 1930’s the collapse of the banking system propelled the world into an economic collapse. Depositors lost their savings, confidence was shattered, companies starved for capital went out of business overnight, borrowers defaulted en masse and unemployment soared. A collapsed banking system guarantees an instant economic depression. A mere generation later, the world is […]
Feds Approve FirstMerit Corp Acquisition of Citizens Republic Bancorp
March 23, 2013 By Leave a Comment
The Federal Reserve today issued an order approving the acquisition of Citizens Republic Bancorp by FirstMerit Corporation. FirstMerit Corp, which had announced the acquisition last September was waiting for regulatory approval before consummating the transaction which is still subject to shareholder approval. Completion of the acquisition is expected to occur in the second quarter of […]
Frontier Bank, LaGrange, GA, Closed By Regulators, Largest Bank Failure of 2013
March 8, 2013 By Leave a Comment
Frontier Bank, La Grange, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. The FDIC sold the failed bank to HeritageBank of the South, Albany, Georgia. HeritageBank will assume all deposits of Frontier. Frontier Bank was established in 1946 and originally named Valley National Bank of […]
Fed Says Largest Banks Would Lose Half Trillion Dollars Under Adverse Economic Conditions
March 7, 2013 By Leave a Comment
Based on the results of the Federal Reserve’s stress tests, the nation’s 18 largest banks would collectively lose a massive $462 billion under an extremely adverse hypothetical economic scenario. Reflecting the severity of the stress scenario–which includes a peak unemployment rate of 12.1 percent, a drop in equity prices of more than 50 percent, a […]
Fannie Mae Stock Soars As Mortgage Delinquencies Decline
March 5, 2013 By Leave a Comment
Fannie Mae’s recently released Monthly Summary reports that serious loan delinquencies decreased slightly in January. A single family home mortgage loan classified as “seriously delinquent” is three or more months past due or in the process of foreclosure. A multifamily mortgage loan is considered seriously delinquent when payments are 60 days or more past due. […]
Freddie Mac Stock Jumps On Earnings – What’s Next For Shareholders?
March 2, 2013 By Leave a Comment
Freddie Mac (FMCC), the government sponsored agency that backs mortgage loans for millions of American home buyers reported all time record annual profit of $11 billion for 2012. Freddie Mac has been in the black now for five consecutive quarters as the housing market improves and loan delinquencies decrease. Freddie Mac has been operating under […]
Number of Banks on FDIC Problem Bank List Remains Historically High
March 1, 2013 By 1 Comment
The number of banks on the FDIC Problem Bank List declined for the seventh consecutive quarter. According to the latest FDIC Quarterly Banking Profile, the number of problem banks as of December 31, 2012, declined to 651 from 694 in the previous quarter. Despite significant recovery in the banking industry, the number of problem banks […]
Bernanke Tells Retirees and Savers “To Take One For The Team” – Interest Rates To Remain At Zero
February 26, 2013 By 4 Comments
Federal Reserve Chairman Ben Bernanke presented to Congress today the semiannual Monetary Policy Report which discusses current economic conditions, monetary policy and thoughts on fiscal policy. Mr. Bernanke vigorously defended the Federal Reserve’s zero interest rate policy stating that the benefits of an easy money policy outweigh the “potential costs of the increased risk-taking in […]