The Financial Stability Board (FSB) was established to coordinate international efforts to promote effective regulation and supervision of the global financial system. In its latest report on global systemically important banks, the FSB makes it clear that the world’s largest banks have become too big to fail without crashing the global economy. The leaders of […]
FDIC Issues 56 Enforcement Actions In September
November 4, 2011 By Leave a Comment
A total of 56 administrative enforcement actions were taken by the FDIC against problem banks in September, up from 53 in August. The most serious September enforcement actions taken by the FDIC included 10 consent orders, 3 prompt corrective actions and 16 civil money penalties. Please see the complete list of enforcement actions taken below. […]
Bank Of America Derivatives Timebomb Shows System Is Corrupt To The Core
November 3, 2011 By 12 Comments
The Federal Reserve recently allowed Bank of America to move its massive derivative positions from the bank holding company to its banking subsidiary which is an FDIC insured depository institution. By allowing this transfer, the Federal Reserve has allowed Bank of America to shift the risk of loss on speculative derivative contracts from the non-bank […]
Four Banks Closed In Georgia, Florida and Colorado – Losses Now Total $7 Billion
October 21, 2011 By Leave a Comment
The continued decline in real estate values and aggressive lending during the real estate boom continue to haunt the banking industry. Regulators closed four banks in three states this week bringing the total banking failures for the year to 84. Two banks were closed in Georgia which now accounts for 26% of all U.S. banking […]
FDIC To Cover Losses On $75 Trillion Bank of America Derivative Bets
October 20, 2011 By 28 Comments
Potential losses on Bank of America’s massive $75 trillion book of risky derivative contracts has just been dumped onto the FDIC by the Federal Reserve. Derivatives, once described by Warren Buffet as “financial weapons of mass destruction” are complex contracts entered into for speculation or to hedge risks linked to a wide variety of other […]
Four Bank Failures In Four States Brings Year’s Total To 80
October 14, 2011 By Leave a Comment
Regulators across the nation had a busy Friday evening, closing four banks in four different states. This week’s banking failures increase the total number of failed banks for 2011 to 80. During 2010, regulators closed a total of 157 banks across the nation. The FDIC is optimistically predicting a much lower number of banking failures […]
FDIC Figures Out That Criminals Were Running Failed United Commercial Bank
October 12, 2011 By Leave a Comment
United Commercial Bank, San Francisco, CA, which was closed by regulators on November 6, 2009, was the fourth largest banking failure of 2009 and resulted in losses to the FDIC Deposit Insurance Fund of $2.5 billion. Almost two years later, the FDIC announced that it was seeking to prohibit ten former officers of the bank […]
FDIC Forecasts $19 Billion In Losses On Banking Failures – Why The Losses Will Be Five Times Larger
October 11, 2011 By 4 Comments
The FDIC today released an update on expected losses for banking failures through 2015. For the five year period 2011 through 2015 the FDIC is forecasting total losses from banking failures of $19 billion. Total losses from banking failures during 2010 were $23 billion compared to $6.4 billion in 2011 year to date losses. A […]
Who Will Rescue Collapsing European Banks When Banks Are Bigger Than Countries?
October 6, 2011 By Leave a Comment
The European banking crisis continues to spiral out of control while hapless politicians fail to put together a credible resolution plan. Part of the problem may be that it is difficult to construct a solution when failing banks are bigger than the countries that are trying to rescue them. The latest European bank on the […]
Global Financial System Faces Worldwide Bank Runs and Failures, Citigroup’s $300 Billion Problem
October 5, 2011 By Leave a Comment
Three years after the height of the financial crisis, the issue of impaired assets on bank balance sheets remains a major risk to the health of the banking system. Regulators have allowed banks to avoid taking losses on impaired assets by not requiring mark to market accounting. The extent of overvaluation on bank loans can […]