The government agency established to be the watchdog over the Troubled Asset Relief Program (TARP) has been keeping busy. The financial crisis of 2008 resulted in the disbursement of over $400 billion of TARP funds which requires government oversight. In order to prevent waste, fraud and abuse of taxpayer funded TARP disbursements, Congress created the […]
Billon Dollar Bank Failure Caused By “Massive Bank Fraud” At Bank of the Commonwealth
April 24, 2012 By 1 Comment
Four years after the start of the banking crisis, federal investigators are proving what many Americans have long suspected – the root cause of many banking failures was due to fraud. The Office of the Special Inspector General for The Troubled Asset Relief Program (SIGTARP) announced last week that a massive $41 million bank fraud […]
Fort Lee Federal Savings Bank, New Jersey, Closed By Regulators
April 20, 2012 By Leave a Comment
The first bank closing of the year in New Jersey occurred today with the failure of Fort Lee Federal Savings Bank, Fort Lee, New Jersey. The total number of bank failures in New Jersey has been very small since the beginning of the financial crisis in 2008. New Jersey has accounted for only 5 of […]
FDIC Issues 53 Enforcement Actions, Number of Problem Banks Remains Elevated
March 30, 2012 By 1 Comment
The FDIC released the list of enforcement actions taken in February 2012 against 53 banks. In the previous month of January, the FDIC had issued 42 enforcement actions. The orders issued by the FDIC included 10 civil money penalties, 1 prompt corrective action, 13 consent orders, 1 order terminating deposit insurance and 19 orders terminating […]
Fidelity Bank of Michigan Closed By Regulators, Sold To The Huntington National Bank
March 30, 2012 By Leave a Comment
Fidelity Bank of Dearborn, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation which appointed the FDIC as receiver. Fidelity Bank, owned by holding company parent Dearborn Bancorp, Inc. was established in 1994 and had a total of 15 branches. According to the failed Bank’s website, Fidelity Bank is the only […]
Premier Bank, Wilmette, IL, Closed by Regulators, 15th Banking Failure of 2012
March 23, 2012 By Leave a Comment
Troubled Premier Bank of Wilmette, IL, was closed today by state regulators. The FDIC, named as receiver, sold the failed bank to International Bank of Chicago, Chicago, IL, which will assume all deposits of failed Premier Bank. Premier’s two branches will reopen Saturday as branches of International Bank and all Premier depositors will automatically become […]
Covenant Bank & Trust of Georgia Closed By Regulators
March 23, 2012 By Leave a Comment
Covenant Bank & Trust, Rock Spring, Georgia, in business since only 2006, was closed today by the Georgia Department of Banking and Finance. The FDIC, appointed as receiver, sold the failed bank to Stearns Bank, N.A., St. Cloud, Minnesota, which will assume all deposits of failed Covenant Bank. Covenant Bank & Trust was established as […]
Bank Stress Tests Viewed As Fed Deception By Critics
March 19, 2012 By Leave a Comment
Every banker knows that public confidence in the banking industry is essential. With the banking industry approaching a near meltdown last year, the Federal Reserve decided to conduct a series of “stress tests” on the country’s largest banks in order to restore confidence in the banking system. After reviewing the results of the stress tests, […]
Big Bank CEOs Take Home Massive Paychecks As Savers and Shareholders Get Crushed
March 16, 2012 By Leave a Comment
Right or wrong, most consumers have an overwhelmingly negative opinion about big banks. According to a survey by Research and Markets, 86% of social media comments about U.S. and European banks are negative. The negative perception of big banks by the public has become so pervasive that most bank executives probably just ignore it at […]
New City Bank, Chicago, IL, Closed By Regulators, FDIC Fails To Find Buyer
March 9, 2012 By 1 Comment
New City Bank, Chicago, Illinois, is the second bank to fail in Illinois this year. The insolvent bank was closed by the Illinois Department of Financial and Professional Regulation and the FDIC was named as receiver. The FDIC was unable to find a buyer for the failed bank, the second time this has happened in […]