2009 Bank Failures

It's amazing. The underpinnings in our economy have eroded so completely over the last 15 years that now banks are failing left and right.

Do we believe that we've reached a peak and are heading back to solvency, or that 5 bank failures a month may be a steady figure in the coming months?
 
One thing that is interesting to watch-

That is- keep an eye on the stocks of the banks that end up BUYING the banks that the FDIC shuts down.

Take a look at this one- which got one of the closures last friday:

East West Bancorp Inc. (EWBC)

East-west took over United Commerical.

Today, East-West Bancorp shares soared.

w



 
Bank failure Friday!!!

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Small banks in Ga., Mich. closed

Regulators shut small banks in Georgia, Michigan; marks 117 US bank failures this year


  • By Marcy Gordon, AP Business Writer
  • On 6:47 pm EST, Friday November 6, 2009
WASHINGTON (AP) -- Regulators have shut small banks in Georgia and Michigan, bringing the number of bank failures this year to 117 amid the struggling economy and a cascade of defaults on loans.

The Federal Deposit Insurance Corp. on Friday took over United Security Bank, based in Sparta, Ga., with $157 million in assets and $150 million in deposits, and Home Federal Savings Bank in Detroit, with $14.9 million in assets and $12.8 million in deposits. Ameris Bank, based in Moultrie, Ga., agreed to assume the assets and deposits of United Security, while Liberty Bank and Trust Co., based in New Orleans, is buying the assets and deposits of Home Federal Savings.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP) -- Regulators on Friday shut United Security Bank, a small bank in Georgia, bringing the number of bank failures this year to 116 amid the struggling economy and a cascade of defaults on loans.

The Federal Deposit Insurance Corp. took over United Security Bank, based in Sparta, Ga., with $157 million in assets and $150 million in deposits and two branches. Ameris Bank, based in Moultrie, Ga., agreed to assume the assets and deposits of the failed bank.

The failure of United Security Bank is expected to cost the federal deposit insurance fund an estimated $58 million.

With United Security, 21 Georgia banks have failed this year, more than in any other state. Most of the failures have involved banks in the Atlanta area, where the collapse of the real estate market brought economic dislocation. Failures also have been especially concentrated in California and Illinois.

As the economy has soured, with unemployment rising, home prices tumbling and loan defaults soaring, bank failures have cascaded and sapped billions out of the federal deposit insurance fund. It has fallen into the red.

http://finance.yahoo.com/news/Small-banks-in-Ga-Mich-apf-3282864371.html/print?x=0
 
Regulators Seize Nine U.S. Banks

By ROBIN SIDEL

Banking regulators seized nine related community lenders in California, Illinois, Arizona and Texas, representing the collapse of one of the nation's largest privately held bank holding companies that grew through a string of acquisitions dating back to the savings-and-loan crisis of the 1990s.
The nine small banks represented the holdings of FBOP Corp., based in Oak Park, Ill., and owned by a banker who had plowed into real-estate lending around the country.
Bank Failures

U.S. bank closures, in an interactive map, with details in a sortable table.



The Federal Deposit Insurance Corp. said that FBOP, the holding company, wasn't closed as a result of Friday's actions. The nine banks, however, essentially represented all of FBOP's assets, which would potentially leave it without any other operations.

U.S. Bancorp, the large Minneapolis-based regional bank, agreed to assume essentially all of the nine banks' combined assets of $19.4 billion and deposits of $15.4 billion. It is the latest in a flurry of failed-bank acquisitions for U.S. Bancorp, which avoided much of the banking industry's pain due to its conservative strategy.

"This transaction is consistent with the growth strategy that we have outlined many times in the past, which includes enhancing our existing franchise through low-risk, in-market acquisitions," said Rick Hartnack, vice chairman of consumer banking for U.S. Bancorp.

The latest seizures raise the total number of failed banks this year to 115. It is the most failures since 1992, when 181 banks collapsed during the savings-and-loan crisis.

more.......

http://online.wsj.com/article/SB125695616220920387.html?mod=googlenews_wsj
 
Well, President Obama, Sec Clinton, Sen Pelosi can no longer use the terms `the mess they have to try to mop up' in any legitimate, truthful fashion. So do you suppose that will stop any of them from continuing? That was some gathering of documented, video'd information !!! love ya, Buster !
 
And one credit union today:

First Delta Federal Credit Union Placed Into Conservatorship

The credit union is open, operating and serving its members


October 23, 2009 Alexandria, Va. – The National Credit Union Administration (NCUA) today assumed control of operations at First Delta Federal Credit Union of Marks, Mississippi. NCUA’s goal is to continue credit union service to the members and ensure safe and sound credit union operations.



http://www.ncua.gov/news/press_releases/2009/MR09-1023.htm
 
Citizens Business Bank, Ontario, California, Assumes All of the Deposits of San Joaquin Bank, Bakersfield, California

FOR IMMEDIATE RELEASE
October 16, 2009

San Joaquin Bank, Bakersfield, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Business Bank, Ontario, California, to assume all of the deposits of San Joaquin Bank.

The five branches of San Joaquin Bank will reopen on Monday as branches of Citizens Business Bank. Depositors of San Joaquin Bank will automatically become depositors of Citizens Business Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Citizens Business Bank that it has completed systems changes to allow other Citizens Business Bank branches to process their accounts as well.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $103 million. Citizens Business Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to alternatives. San Joaquin Bank is the 99th FDIC-insured institution to fail in the nation this year, and the tenth in California. The last FDIC-insured institution closed in the state was Affinity Bank, Ventura, on August 28, 2009.
 
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