2009 Bank Failures

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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 !
 
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
 
Bank failure Friday!!!

ap_106x27.gif

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
 
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



 
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?
 
phil said:
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?
Click to expand...

Five bank failures a month? No. I think we'll see five bank failures a WEEK for the next two years.

I figured out WHY we are seeing five bank failures a week now. There are already more than 300 banks which have fallen below the FDIC required 4% reserves list. In normal times, those banks would have been shut down. Here is the list as of last July- many in this list which are marked in RED (below minimum reserves) have been closed, but are not shown as updated since then. This list is only marked with those closed by early Sept or so. Nearly 300 of them should have already been shut down under FDIC rules.
http://bankimplode.com/list/troubledbanks.htm


However, the FDIC doesn't have the manpower to do them all at once.

They are shutting them down as fast as they can get in, review the books, and type up the legal paperwork ordering them to close/sellout. And they have to find some other bank to pick them up.

With the limited manpower they have, they are doing it as fast as they can, but they won't be finished for a LONG long time. They can do anywhere from four to nine per week- as we've seen over the last month or so. They have to find a buyer, have to prepare all the paperwork, and have to spend time reviewing the books of the next one.

Bad times for banks, for as far as they eye can see. As property values continue to go down, and as foreclosures continue, banks will continue to fall like flies.
 
I guess I'd like to know how we got here, but just looking at the last 15 years of mismanagement in the financial markets, and lack of government oversight, I can see how. What was the former administration doing for the last 8 years? I guess they bought into the notion that "less government was better".
 
To bad both sides of Congress and both Presidents reward 15 years of mismanagement and bail outs.

No change yet, GMAC, Fred, and Fan are all back in line for more imaginary tax dollars.
 
Re: Bank Failures

Very interesting. What they don't tell you is that if the banks go belly up and the government insure it. You will get your money back they just don't tell you how long it will be before you get it. One week,one month,one year or maybe longer.
 
Re: Bank Failures

ezmoney said:
Very interesting. What they don't tell you is that if the banks go belly up and the government insure it. You will get your money back they just don't tell you how long it will be before you get it. One week,one month,one year or maybe longer.
Click to expand...

Its good to be poor. :blink:
 
Re: Bank Failures

grandma said:
http://tinyurl.com/y8b48vl
interesting article: `are you ready if yours...'
Click to expand...

Very good article, it should be used as a checklist for all of us and to help our parents. I wasn't aware of the 2013 FDIC reduction though. When Mom died last year, we went thru the multiple ownership cagegories to protect Dad. I also bought a huge safe from a business liquidation sale for cash and other sundry valuables, in the event banks are shut dwon for awhile and you get blocked from you SD box..
 
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