The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
Savings Experiment: Snow Removal
Three more banks failed last week, bringing 2010's total to 25. Already, this year's bank failures have matched the 2008 full-year total and exceeded the 2007 amount by a factor of greater than eight. The three regional banks that failed last week were in Florida, Illinois and Maryland, with close to a billion dollars in aggregate assets. According to the FDIC, the pace of bank failures could be set to accelerate in the next few months.
Sun American Bank, in Boca Raton, was taken over by the FDIC, with First-Citizens Bank & Trust, based in Raleigh, N.C., assuming the Florida banks assets and almost all of its deposits. Sun American had assets of $535.7 million and $443.5 million in deposits. Since July, First-Citizens has acquired the assets of four failed banks, the others being First Regional Bank of Los Angeles, Venture Ban (Lacey, Wash.) and Temecula Valley Bank (Temecula, Calif.).
Heartland Bank and Trust (Bloomington, Ill.) assumed the assets and liabilities of the failed Bank of Illinois (based in Normal, Ill.). Bank of Illinois had $211.7 million in assets and $198.5 million in deposits, and Heartland is sharing losses on $166.6 million in assets with the FDIC. A buyer for Waterfield Bank, in Germantown, Md., wasn't found, so the FDIC created a new savings institution that will run until April 5, 2010 to give customers access to their deposits, so they can open accounts at other banks. Waterfield had assets of $155.6 million and deposits of $156.4 million.
These three bank failures have cost the FDIC's insurance fund a total of $208.5 million. Sun American was the most expensive for the fund, at $103.8 million, followed by the Bank of Illinois ($53.7 million) and Waterfield Bank ($51 million). Last year, the FDIC fund dipped into the red, sporting a deficit of $20.9 billion by December 31, 2009. Over the next four years, the bank failures triggered by the financial crisis are expected to cost the FDIC $100 billion. In addition to the fund, the FDIC has approximately $66 billion in cash and securities to help cover losses.
It's a good thing the FDIC has resources on hand, because more bank failures are expected -- and at a faster rate.
According to the FDIC's confidential "problem" list, USA Today reports, the number of banks at risk jumped from 552 in the third quarter of 2009 to 702 in the fourth quarter. Even though the banking sector turned in a $914 million aggregate profit for the fourth quarter of 2009 -- compared to a $37.8 billion loss in the fourth quarter of 2008 -- almost a third of all banks reported a net loss.
Banks remain under pressure from the economy, with tighter lending standards constraining lending revenue, unemployment pressuring deposits and loan repayment and a variety of real estate loans (including commercial) posing a threat for the future.
Last year, 140 banks failed, the highest number for a single year since 1992. It cost the FDIC insurance fund $30 billion.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
Reader Comments (Page 1 of 1)
3-07-2010 @ 2:37PM
sean murry said...
the bank in normal has been running in the red for a while,there have been three loans called in.
3-08-2010 @ 10:23AM
Paul Fraser said...
Royal Bank of Canada (RBC Bank) : Corporate Bully
$100,000 - MISTAKE (FISHERMEN'S LOAN)
I'm a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC Bank account.
There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
Only problem is the loans officer was a replacement who wasn't familiar with these type of loans. She never informed me verbally or in writing about this new criteria.
http://www.pfraser.blogspot.com
http://www.corporatebully.ca
http://www.youtube.com/CORPORATEBULLY
http://www.p2pnet.net/story/17877
Help me fight the Royal Bank of Canada (RBC Bank) by closing your account.
"Fighting the Royal Bank of Canada (RBC Bank) one customer at a time"