Posts Tagged ‘loss-share’

“Eight Banks Fail in April”

After a mild March six banks were closed on Friday!

Only three banks were closed by the FDIC in March, but the wind changed in April and bank closures increased dramatically. Eight banks have been seized by the FDIC in April with two Friday’s remaining in the month.

Georgia lost two more banks—the 7th and 8th of the year—and has now lost 59 banks since the crisis began. Illinois lost one in February, one in March, and now one in April for its 43rd lost bank, just 4 away from Florida with 47.

Are bank foreclosures, again, going to be a problem?

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“Four More Banks Fail on Friday”

Two more Georgia and two more California banks are taken over.

Georgia lost their 5th and 6th banks this year—California their 2nd and 3rd in 2011.

Since the bank crisis began in 2008 Georgia has now lost 57 banks. Though still fourth, California extended its total to 35 with the loss of the two this week, but remains behind both Florida and Illinois in bank foreclosures.

Another $267.6 million was drained from the DIF for the four losses on Friday and the loss-share is a heavy $670.5 million. The FDIC is also going to retain $28.5 million in assets from Charter Oak Bank in Napa for later disposition.

The ‘problem bank’ list for last quarter should be released this week and will indicate the direction the banking crisis is heading.

Anything over last quarter’s 860 troubled institutions would be a negative and not bode well for the nation’s banking system.

An interesting and important point has resurfaced in the banking debate that should be aggressively discussed with renewed interest and action.

Hundreds of banksters were indicted and incarcerated for their parts in the Savings & Loan crisis. To date, not one—not a single executive—has gone to prison as a result of this banking crisis.

It appears Shiela Bair and the FDIC are too weak or lack the desire to bring these criminals to justice.

Is it the Department of Justice’s obligation to bring charges against these criminals?

Are they doing their job? Or is this just another failure of another weak administration?

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“Florida Loses Three More Banks!”

The FDIC takes over six banks on Friday: 96th in 2010!

Bank Failures, Mid July

Failures thru Mid-July

Not only did Florida increase its total banks lost to 33 since 2008, but South Carolina lost its 2nd and 3rd banks this year.

South Carolina hadn’t lost a bank since the FDIC started listing failures in 2000, until it lost Beach First National Bank in Myrtle Beach on April 9th. The bank was seized by the Office of the Comptroller of the Currency and assigned to the FDIC as receiver. They immediately entered into a purchase and assignment agreement with the Bank of North Carolina in Thomasville.

The loss-share agreement with BNC was for $500,000,000 and the DIF estimated a loss of $130 million to the Fund. All three South Carolina Banks cost the Fund $320 million. The loss-share with the receiving banks is an incredible $1.3 billion.

The six banks that failed on Friday will cost the Deposit Insurance Fund $335 million. Combined with the 4 banks that closed last week, July has already drained $677 million from the Fund.

The question is, as always, how many banks will fail in the second half of the year?

And…how much is it going to cost the taxpayers?

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