One Out Of Every Ten Banks Is A “Problem Bank” – FDIC Issues 56 Enforcement Actions In April 2012

The FDIC announced in a press release that 56 enforcement actions were taken against banks and individuals during April 2012.  In the previous month, the FDIC had issued 72 enforcement actions. The FDIC enforcement actions issued in April included 14 civil money penalties, 1 prompt corrective action, 13 consent orders, 19 orders terminating previous consent […]

Five Banks Collapse In Four States – 2012 Bank Failures Total 22 – Are Your Deposits Insured?

Regulators got back to work during the last week of April, closing five banks in four different states.  A total of 22 banks have failed this year compared to a total of 92 bank failures during 2011.  If the rate of bank failures for the first four months of the year is annualized, total bank […]

FDIC Issues 53 Enforcement Actions, Number of Problem Banks Remains Elevated

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 […]

Fed Says Banks Can Withstand Financial Hurricane – Savers, Borrowers and Shareholders Not So Lucky

Stress tests of the largest banks in the country against a financial hurricane of “extremely adverse” economic conditions shows that almost all of the largest banks in the country would be able to maintain adequate capital levels.  The Federal Reserve said that 18 of the 19 banks stress tested would survive even if stock prices […]

Not All Banks Made Poor Lending Decisions During The Bubble Years – 5 Banks Worth Buying

With hundreds of bank failures over the past four years and the Problem Bank List at a 20 year high, it is sometimes easy to get the impression that all banks were engaged in reckless lending during the real estate bubble years. While virtually all of the “Too Big To Fail Banks” engaged in highly […]

Two Banks Fail In Minnesota and Georgia – FDIC Losses Hit $1 Billion

Regulators closed two banks in Minnesota and Georgia, bringing the total number of banking failures for the year to eleven.  A total of four bank failures have now occurred in Minnesota and Georgia.  During all of 2011 a total of only two banks failed in Minnesota.  Georgia had a total of 23 bank failures during […]

Why Bank Stocks Are Impossible To Analyze or Value

During 2012, investor fears about the financial condition of banks resulted in the biggest decline in bank stocks since the financial crash of 2008.  A weakening economy and fears about massive exposure to insolvent European financial institutions sent bank investors running to the exits. The brutal sell off in banking stocks during 2012 can be […]

Foreclosure Settlement Q&A – Who Wins, Who Loses – A Victory For The Irresponsible

A $25 billion foreclosure settlement reached between the government and the big banks has many wondering who will win and who will lose among the different parties involved.  Although the settlement is complicated and will take years to work out, the basic framework will please some and annoy others. Here are some basic questions and […]

TARP Lives On – 370 Problem Banks Remain On U.S. Treasury Life Support

The $700 billion Troubled Asset Relief Program (TARP) that was authorized in 2008 to bailout failing financial institutions is still in the process of being wound down.  The latest report from the Government Accounting Office (GAO) (which is required by law to report on TARP every 60 days) reveals that the U.S. Treasury is still […]