Three Years of Bank Failure
Since the start of 2010 through the first 3 weeks of March, thirty-seven (37) banks have succumbed to the depressionesque economy which began for banks in 2008.
On March 19th the FDIC (Federal Deposit Insurance Corporation) took over 7 banks, the largest single week total this year (6 were closed on January 29th).
FDIC Chairperson, Sheila Bair, in an interview last week stressed that despite the improvement in Big Banks, 2010 was going to be a rough year for many other banks.The FDIC deserves high marks for their efficiency in handling the bank failures and maintaining a stable environment.
They also get high marks for sensitivity in their decision to seize LibertyPointe Bank on Thursday, March 11th instead of Friday. Most of LibertyPointe’s employees and customers are Orthodox Jews and the FDIC wanted to avoid closing the bank during the Jewish Sabbath which began at sundown on Friday.
In the other Manhattan seizure, Charles Antonucci, CEO of Park Avenue Bank, was arrested and charged with fraud and lying on an application to receive TARP funds. He is the first executive to be charged with a crime related to the Troubled Asset Relief Program.
What more can we expect of banks for the rest of 2010? Read the rest of this entry »
Efforts to protect consumers are a deception!
Members of the Senate, under the guise of protecting the American people, are deceiving us into believing they have our best interests at heart. But that’s an untruth which elected officials have elevated to a fine art.
Everyone, including Senators and Representatives, realizes that the financial system in the United States needs reforming and that involves re-regulating all aspects of financial activities.
Our politicians understand the need for regulation because it was they that unleashed the predatory beast that is killing us, through a series of legislative deregulations; the ‘real’ cause of the financial meltdown and the extreme pain currently felt on Main Street.
After 30 years of stripping away most of the regulations that protected hard-working Americans from the ills of a predatory society we find ourselves in a political and financial morass.
Yet they are reluctant to help hard-working Americans fight the predatory practices of the Big Banks and other financial services institutions, and the health and pharmaceutical giants.
Proposed legislation is only a partial fix to a multitude of problems. It doesn’t seem like Senators really want to fix the financial problems consumers face.
The important question is why? Why the reluctance to help their constituents, the American people?
Read the rest of this entry »
What started out as a ‘Grass Roots’ movement is low on steam.
By definition grass roots is: ‘ordinary people regarded as the main body of an organization’s membership. Therefore, the ‘main body’ of the Tea Party is a collection of ordinary people with a common interest.
So what is the common interest of the members of this Tea Party: government spending, or taxation, or a return to the Constitution, or seeing President Obama’s birth certificate, or maybe the elevation of Sarah Palin?
Which ever it is, it is clearly evident that even the members of this ‘grass roots’ movement aren’t sure which it is.
From the moment of the first demonstrations, Tax Day, Wednesday, April 15th, it was evident that the movement was destined to struggle!
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On Friday, only two banks were seized by the FDIC closing out a mild month for bank foreclosures.
But two of the seven banks that failed during the month of February were 100 year old institutions. On the 19th The La Coste National Bank, LeCoste, Texas, founded in 1912 and the 120 year old bank, George Washington Savings Bank in Overland Park, Illinois were forced to close their doors.
The seven banks seized in February were less than half of the 15 taken over in January but brought the 2010 total to 22 new bank foreclosures.
In January, 3 other bank’s with histories of over 100 years of serving their communities were closed by the FDIC including 119 year old Barnes Banking Co. of Keysville, Utah.
But more important than the bank failings the last two months was the release last week of the Quarterly Banking Profile by the FDIC. The release of the 4th Quarter results, though positive on the surface, pointed to continued distress in the banking sector.
FDIC insured banks reported $194 million profit for Q4, a $38.7 billion improvement from Q4 of 2008. Under different conditions this might be a good sign, but one out of every three banks reported losses for the 4th quarter.
And, there are too many intangibles to get excited about any rapid recovery in the financial system. Read the rest of this entry »