Posts Tagged ‘Sheila Bair’

“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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“Bank Foreclosures on the Decline!”

That was the positive banking headline until Friday!

Only 14 banks had been seized since eight succumbed to the failing economy on August 20th. That was until Friday when 7 banks became victims.

As I wrote this article on Wednesday, then tried to finish it on Thursday, I asked: “Is this a trend we can get excited about?”

Foreclosures accelerated in April, May and July and with the exception of one week in August and one in September, had been incredibly benign. With only 14 banks taken over in the last nine weeks the total for 2010 climbed slowly to 132 for the year; just eight away from the 140 shuttered and barred last year. Including the seven from Friday we’re now just one away from last year.

Has the banking landscape really changed so much that the number of failing banks would decline so dramatically?

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