2009 Bank Failures

Regulators shut 6 Ga banks, 1 in New York state

Regulators shut 6 banks in Georgia, bank in NY state; brings US bank failures to 64 this year

  • By Marcy Gordon, AP Business Writer
  • On Friday July 24, 2009

WASHINGTON (AP) -- Regulators on Friday shut six banks in Georgia and a small bank in New York state, raising to 64 the number of federally insured banks to fail this year.

The Federal Deposit Insurance Corp. was appointed receiver of the banks: six bank subsidiaries of Security Bank Corp., based in Macon, Ga.; and Waterford Village Bank of Clarence, N.Y.

The six Security banks had total assets of $2.8 billion and deposits of $2.4 billion as of March 31. State Bank and Trust Co., based in Pinehurst, Ga., has agreed to assume all of the banks' deposits and $2.4 billion of the assets, the FDIC said. In addition, the FDIC and State Bank and Trust signed an agreement to share losses on around $1.7 billion of the six banks' assets.

Evans Bank, based in Angola, N.Y., will assume all the assets and deposits of Waterford Village Bank, said to have $61.4 million in assets and $58 million in deposits as of March 31. Its single office in Clarence will reopen Monday as a branch of Evans Bank. Also, the FDIC and Evans Bank agreed to share losses on about $56 million of the failed bank's assets.
With the latest closings, 16 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.

The 64 bank failures nationwide this year compare with 25 last year and three in 2007.
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http://finance.yahoo.com/news/Regul...77.html?x=0&sec=topStories&pos=2&asset=&ccode=
 
U.S. regulators close seven banks

Fri Jul 3, 2009 12:15am EDT

By JoAnne Allen

WASHINGTON (Reuters) - U.S. bank regulators closed seven institutions on Thursday, including six banks in Illinois controlled by one family and a small bank in Dallas, bringing the total number of U.S. bank failures to 52 so far this year.

Founders Bank, of Worth, Illinois, was the largest of the financial institutions seized. The Federal Deposit Insurance Corp said Founders had $962.5 million in assets and approximately $848.9 million in deposits.

The PrivateBank and Trust Co of Chicago (PVTB.O: Quote, Profile, Research, Stock Buzz) will assume all of the deposits of Founders Bank.

The failure is expected to cost the FDIC deposit insurance fund an estimated $188.5 million.

The six failed Illinois banks were all controlled by one family and followed a similar business model, the FDIC said. The failures were related to losses that included soured investments in collateralized debt obligations.

According to a website of one of the Illinois banks, they were part of the Campbell Group of privately owned banks.

Also on Thursday, the FDIC ordered City Bank (CTBK.O: Quote, Profile, Research, Stock Buzz), of Lynnwood, Washington, to cease and desist "operating with management whose policies and practices are detrimental" to the bank and "jeopardize" deposits.
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http://www.reuters.com/article/ousiv/idUSTRE56165S20090703
 
We're number one, we're number one!

http://online.wsj.com/article/SB124458498208199637.html

The U.S. government's decision to let 10 big financial companies repay their taxpayer-funded investments is a break in the clouds for the banking system. In Georgia, though, the storm is raging unabated.

The state is home to just 4% of all U.S. banks, but 20% of the nation's bank failures since August. More banks have collapsed in Georgia than in any other U.S. state, even foreclosure-racked California and Florida. Six Georgia banks have been seized by regulators this year, burned by too much expansion in the past decade and bad real-estate bets.
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<H1>3 more banks fail as FDIC mulls rules for sales

3 more banks fail as FDIC seeks stronger rules for buyers of failed banks

  • By Stephen Manning and David Pitt, AP Business Writers
  • On Thursday July 2, 2009, 6:24 pm EDT
</H1>WASHINGTON (AP) -- Three Illinois banks were shuttered Thursday as government regulators proposed new rules for private equity firms seeking to take over failed banks.
Regulators shut down John Warner Bank of Clinton, Ill.; First State Bank of Winchester in Winchester, Ill.; and Rock River Bank of Oregon, Ill., bringing to 48 the number of U.S. bank failures this year.
The Federal Deposit Insurance Corp. was appointed receiver of all three.
Deposits of John Warner Bank were acquired by Lincoln, Ill.-based State Bank of Lincoln.
Three John Warner Bank branches were to reopen on Friday as branches of State Bank of Lincoln, the FDIC said in a statement.
As of April 30, The John Warner Bank had total assets of $70 million and total deposits of approximately $64 million. In addition to assuming all the deposits of the failed bank, State Bank of Lincoln agreed to buy about $63 million of assets. The FDIC will retain the remaining assets for later disposition.
The FDIC estimated that the cost to the Deposit Insurance Fund will be $10 million.
The deposits of State Bank of Winchester were acquired by The First National Bank of Beardstown, Ill.
Two offices will reopen on Monday under the new bank name.
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http://finance.yahoo.com/news/3-more-banks-fail-as-FDIC-apf-1694043334.html?x=0&sec=topStories&pos=2&asset=&ccode=
 
Citigroup's Clever Plan to Screw Taxpayers...AGAIN!

So Citigroup (C) has proposed that the US taxpayer and other preferred shareholders convert up to $75 billion of preferred stock into common stock, thus bolstering the company's tangible equity and putting it in less desperate need of a complete takeover.

And what will the US taxpayer get for this preferred stock conversion? 40% of the company for some of its $45 billion of preferred, say reports. The reports add that Citigroup's goal here is to keep the US's ownership under 50%, so this won't be a de facto nationalization.

Well, that's nice for Citigroup...and another ream-job for taxpayers.

Citigroup's common equity is currently worth $10 billion. If the US were to convert all $45 billion of its preferred at the current stock price, it should end up with 80% of the company, not 40%.

For the US to convert $45 billion of preferred to common and only get 40% of the company, Citigroup's existing common equity would have to be valued at $65 billion, not $10 billion, and the conversion price would have to be about $10 a share. Or the US would only be able to convert $4 billion of its $45 billion, which wouldn't help Citigroup's tangible equity ratio much.

So is that what Citigroup is trying to do here? Persuade the US goverment to convert to common stock at a price miles above the current trading price, screwing the US taxpayer yet again?

Or does Citigroup have some other secret plan up its sleeve whereby it can take up to $75 billion of debt (preferred stock) off its books and not end up diluting its current shareholders 90%?

http://finance.yahoo.com/tech-ticke...crew-Taxpayers-Again?tickers=c,xlf,^dji,^gspc
 
FDIC, Regulators Shut Down Oregon's Silver Falls Bank



SAN FRANCISCO--Silver Falls Bank, of Silverton, Ore., was closed Friday by state regulators and the Federal Deposit Insurance Corporation. It was the 14th bank to fail so far this year and the 39th since the beginning of the current credit crisis.
Citizens Bank of Corvallis, Ore. will assume all of the deposits of Silver Falls Bank, the FDIC said.
Silver Falls Bank had three branches. As of Feb. 9, the bank had total assets of approximately $131.4 million and total deposits of $116.3 million.
Citizens Bank did not pay a premium to acquire the deposits of Silver Falls Bank.

http://www.foxbusiness.com/story/ma...ic-regulators-shut-oregons-silver-falls-bank/
 
Show-me said:
FDIC announces 1st bank failure of the year
National Bank of Commerce in Berkeley, Ill becomes the first bank to fall in 2009.
http://money.cnn.com/2009/01/16/news/economy/bank_failure/?postversion=2009011619
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Two banks go under:
National Bank of Commerce in Illinois and Bank of Clark County in Washington state.
Updated: January 16, 2009: 10:07 PM ET

The Federal Deposit Insurance Corp. announced Friday that the National Bank of Commerce in Berkeley, Ill., and Bank of Clark County in Vancouver, Wash., had been shuttered.

National Bank of Commerce had total assets of $430.9 million and total deposits of $402.1 million. The FDIC said that the National Bank of Commerce's two branches will reopen Saturday as branches of Republic Bank of Chicago. The FDIC estimates that the cost to the Deposit Insurance Fund will be $97.1 million.

According to the FDIC, Bank of Clark County had total assets of $446.5 million and total deposits of $366.5 million. Uninsured deposits totaled $39.3 million. Bank of Clark County will reopen on Tuesday as branches of Umpqua Bank. The FDIC estimates the cost to its insurance fund will be between $120 million and $145 million.
http://money.cnn.com/2009/01/16/news/economy/bank_failure/?postversion=2009011619
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