With loan demand still tepid after over five years of unprecedented monetary stimulus by the Federal Reserve, banks need to invest trillions of dollars of deposits that they can’t lend out. Just as individual savers have been forced to take on more risk and go further out on the yield curve, banks have been forced […]
Counterfeit Cashier’s Checks Are Becoming a Major Problem
April 26, 2014 By Leave a Comment
You just sold your car to what appeared to be a regular guy. After some back and forth negotiations the buyer agreed to accept what you considered a fair price. You sign over the title to the buyer, give him the keys, and the buyer gives you an official cashier’s check for the purchase price […]
FDIC Issues 40 Enforcement Actions
April 26, 2014 By 2 Comments
The FDIC issued a list of 40 enforcement actions taken against banks and individuals during March 2014. The enforcement actions include the following: 4 consent orders 1 prompt corrective action directive 9 section 19 orders 14 orders terminating consent orders and cease and desist orders 1 order terminating a prompt corrective action 2 civil money […]
Allendale County Bank, Fairfax, SC, Closed by Regulators, Sixth Bank Failure of 2014
April 25, 2014 By Leave a Comment
South Carolina state regulators closed Allendale County Bank, Fairfax, SC, and appointed the FDIC as receiver. In order to protect depositors the FDIC sold the failed bank to Palmetto State Bank, Hampton, South Carolina, which will assume all deposits of failed Allendale County Bank. According to the FDIC, selling a failed bank to another bank […]
Most Americans Still Don’t Trust Banks and Here’s Why
April 5, 2014 By 1 Comment
Six years after the near melt down of the United States banking industry in 2008, more than half of all Americans still lack confidence in both the banking system and the government. Interestingly the United States with some of the biggest banking institutions in the world and the implicit backing of the United States Treasury […]
Vantage Point Bank, Horsham, PA, Becomes Fifth Banking Failure of 2014
February 28, 2014 By 1 Comment
Vantage Point Bank, Horsham, PA, became the fifth banking failure of 2014 as regulators swooped in to close the insolvent bank. Established in December 2007 as real estate values were already collapsing this small community bank quickly ran into financial difficulties with bad loans, declining revenues, troubles with their home mortgage financing programs, and the […]
Millennium Bank, Sterling, VA, Closed By Regulators
February 28, 2014 By Leave a Comment
Millennium Bank, Sterling, Virginia, was close today by the Office of the Comptroller. The failed bank which was established in 1999 was placed into receivership with the FDIC. To protect depositors the FDIC sold the failed bank to WashingtonFirst Bank, Reston, VA. Under the terms of the purchase and assumption agreement with the FDIC, WashingtonFirst […]
Increased Bank Profits Mainly Due to Lower Loan Loss Provisions – When Will Real Profits Increase?
February 27, 2014 By Leave a Comment
On the surface the latest FDIC Quarterly Banking Profile reflects a recovering banking industry with robust profit growth. For the fourth quarter of 2013 banks collectively reported net income of $40.3 billion which is a $5.8 billion or 16.9% increase from the previous year’s fourth quarter. Making the picture look even brighter is the fact […]
FDIC Says Problem Banks Still Six Times Higher Than in 2007
February 27, 2014 By Leave a Comment
The FDIC Quarterly Banking Profile for the fourth quarter of 2013 shows a continued reduction in the number of problem banks. The total number of banks on the FDIC Problem Bank List decreased for the 11th consecutive quarter to 467 banks as of December 31, 2013 compared to 515 problem banks in the previous quarter. […]
Syringa Bank, Idaho, Becomes Third Banking Failure of 2014
February 1, 2014 By Leave a Comment
Idaho state banking regulators closed Syringa Bank, Boise, Idaho, and appointed the FDIC as receiver for the failed bank. The FDIC sold Syringa Bank to Sunwest Bank, Irvine, CA, which will assume all deposits of the failed bank. Syringa Bank, founded in 1997, had total assets of $153.4 million and total deposits of $145.1 million […]