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Bank Failure Tally for 2010 Hits 50

Tom Johansmeyer — Sun, 18 Apr 2010 15:10:00 EST

Filed under: Industry, Recession, Financial Crisis

Eight more banks failed last week, bringing the 2010 total to 50. Three of the failures were in Florida, and two were in California. Massachusetts, Michigan and Washington had one bank failure each.

In Florida, the Federal Deposit Insurance Corporation took over Riverside National Bank, First Federal Bank of North Florida and AmericanFirst Bank. TD Bank Financial Group a division of Canadian company TD Bank (TD) took the deposits and nearly all the assets of each. Riverside National had $3.4 billion in assets, with First Federal at $393.3 million and AmericanFirst at $90.5 million.

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Bank Failure Tally for 2010 Hits 50 originally appeared on BloggingStocks on Sun, 18 Apr 2010 15:10:00 EST. Please see our terms for use of feeds.

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Bank Failures Hit 42, Expected to Exceed 2009's 140

Tom Johansmeyer — Mon, 12 Apr 2010 09:00:00 EST

Filed under: Bad News, Economic Data, Financial Crisis

Friday marked the failure of another bank, pushing the 2010 total to 42. The Federal Deposit Insurance Corporation took over Beach First National Bank in Myrtle Beach, South Carolina.

The bank had $585.1 million in assets and $516 in deposits. Bank of North Carolina, based in Thomasville, is taking over the failed bank's assets and deposits. The Beach First failure is expected to cost the FDIC $130.3 million.

A growing number of loan defaults, especially in the commercial real estate sector, have put considerable pressure on banks across the country. In fact, failures are expected to peak this year, exceeding the 140 that occurred in 2009, which was the worst year since 1992.

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Bank Failures Hit 42, Expected to Exceed 2009's 140 originally appeared on BloggingStocks on Mon, 12 Apr 2010 09:00:00 EST. Please see our terms for use of feeds.

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Bank Failure Tally Hits 25

Tom Johansmeyer — Sun, 07 Mar 2010 10:10:00 EST

Filed under: Recession, Financial Crisis

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.).

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Bank Failure Tally Hits 25 originally appeared on BloggingStocks on Sun, 07 Mar 2010 10:10:00 EST. Please see our terms for use of feeds.

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Lending Drops to Multi-Year Lows

Mark Fightmaster — Wed, 24 Feb 2010 10:00:00 EST

Filed under: Financial Crisis

According to the Federal Deposit Insurance Corp., U.S. banks saw their sharpest decline in lending since 1942, the Wall Street Journal reports. The lending drop is making it harder for the economy to recover.

Yes, top-tier banks are recovering, but the rest of the banks are suffering. The FDIC believes the number of U.S. banks at risk of failing have increased to a 16-year high of 702. This makes these banks far less willing to extend loans, which leads the banks to take credit away from both businesses and consumers.

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Lending Drops to Multi-Year Lows originally appeared on BloggingStocks on Wed, 24 Feb 2010 10:00:00 EST. Please see our terms for use of feeds.

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Bank Failures Surge 25% in One Week

Tom Johansmeyer — Sun, 21 Feb 2010 09:40:00 EST

Filed under: Recession, Financial Crisis

Not even two months into 2010, the number of banks closed this year has already reached 20, not far behind the full-year result of 25 in 2008 and ahead of the three in 2007. On Friday, four banks were shut down by regulators, carrying forward the momentum from 2009's 140 bank failures. In only one week, the number of bank failures this year spiked 25%.

La Jolla Bank FSB in California was taken over by the Federal Deposit Insurance Corp. It had 10 branches, $3.6 billion in assets and $2.8 billion in deposits. Its deposits and assets were taken over by OneWest Bank in Pasadena in a deal that is expected to cost the insurance fund $882.3 million. OneWest and the FDIC will share the losses on failed bank loans and other assets of approximately $3.3 billion.

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Bank Failures Surge 25% in One Week originally appeared on BloggingStocks on Sun, 21 Feb 2010 09:40:00 EST. Please see our terms for use of feeds.

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Bank Failures Begin Again

Tom Johansmeyer — Sat, 16 Jan 2010 09:40:00 EST

Filed under: Recession, Financial Crisis

After seeing the number of bank failures tick up to 140 last year, there's some slight comfort in seeing the annual total only reach four. The feeling of relief disappears, of course, when you realize that we're only two weeks into 2010. The effects of the late 2008 financial crisis are still with us, as three small banks learned this week -- in Illinois, Minnesota and Utah. As expected, the 2009 trend continues. The Federal Deposit Insurance Corporation's takeover of the banks follows the closure of the much larger Horizon Bank in Bellingham, Wash., the week before.

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Bank Failures Begin Again originally appeared on BloggingStocks on Sat, 16 Jan 2010 09:40:00 EST. Please see our terms for use of feeds.

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Six more banks closed, total hits 130 this year

Tom Johansmeyer — Sun, 06 Dec 2009 10:10:00 EST

Filed under: Bad News, Recession, Financial Crisis

U.S. banking regulators took over six more banks on Friday, bringing the 2009 bank failure tally to 130. So, even with the post-financial crisis situation stabilizing a year later, the continued stream of bank failures serves as a stark reminder that we aren't out of the woods yet. Smaller banks are expected to continue to fail at an higher rate through next year, due in large part to the pressures of deteriorating loans.

Of course, unemployment will continue to be a problem, as it impairs the abilities of borrowers to repay their debts. The squeeze appears to be lightening, as job cuts slowed considerably in November, but the unemployment rate is nonetheless expected to peak next year.

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Six more banks closed, total hits 130 this year originally appeared on BloggingStocks on Sun, 06 Dec 2009 10:10:00 EST. Please see our terms for use of feeds.

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FDIC working on plan to guarantee mortgages to stem home foreclosures

Joseph Lazzaro — Fri, 24 Oct 2008 15:16:00 EST

Filed under: Forecasts, Housing, Financial Crisis

Most economists agree that keep global financial markets liquid - - and filled with dollars - - is an important part of the effort to end the global financial crisis.

Further, along with the removal of toxic assets from bank and financial institution (FI) balance sheets, stemming the rise in home foreclosures among borrowers capable of servicing their mortgages is another key to ending both the financial crisis and the home foreclosure/asset price decline cycle, many economists agree.

Moreover, it looks like federal officials and banks - - after a slow start - - will launch a new, major program to keep more families in their homes. The federal government may start guaranteeing home mortgages to persuade lenders to modify home loans, the chairwoman of the Federal Deposit Insurance Corporation said, Reuters reported Friday.

FDIC Chairwoman Sheila Bair said that under a program her agency and the U.S. Treasury Department are working on, a bank/lender would be required to significantly drop the interest rate, reduce the principal or extend the life of affected loans, The Washington Post reported Friday. In return, the bank/lender would get a government guarantee that the mortgage would be repaid.

Bair, in testimony before the Senate Banking Committee, could not provide an estimate regarding how much the program would cost, but underscored that the bank rescue program passed by Congress earlier this month give the Treasury power to use loan guarantees and credit enhancements to modify loans to prevent avoidable foreclosures, Reuters reported Friday.

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FDIC working on plan to guarantee mortgages to stem home foreclosures originally appeared on BloggingStocks on Fri, 24 Oct 2008 15:16:00 EST. Please see our terms for use of feeds.

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FDIC may have to add cash to replenish insurance fund

Joseph Lazzaro — Mon, 11 Aug 2008 10:25:00 EST

Filed under: Forecasts, Other Issues, Federal Reserve

IndyMac Bancorp.'s failure, along with the failure of seven other banks this year, has erased 17% from an FDIC insurance fund, and will likely propel an increase in insurance fund premiums, Bloomberg News reported Monday.

IndyMac may cost the fund $4-8 billion, in addition to $1.16 billion in earlier bank foreclosure costs, Bloomberg News reported Monday. Premiums for the deposit insurance fund are likely to rise, an FDIC official said.

Economist Peter Dawson said Monday a premium increase would represent the most prudent course for the FDIC.

"Needless to say, given the bank failures, this doesn't come as a surprise or a shock. The FDIC could have explored other funding options, but given the scope of the insurance funds claims, a premium increase would make the most sense at this time," Dawson said.

The FDIC is required to replenish the fund when the reserve ratio, or the balance divided by insured deposits, slips below 1.15%, Dawson said.

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FDIC may have to add cash to replenish insurance fund originally appeared on BloggingStocks on Mon, 11 Aug 2008 10:25:00 EST. Please see our terms for use of feeds.

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Traders now sense Fed rate cut, subprime package

Joseph Lazzaro — Fri, 30 Nov 2007 12:46:00 EST

Filed under: Federal Natl Mtge (FNM), Economic Data, Commodities, Oil, DJIA, Housing, Federal Reserve

On the heels of U.S. Federal Reserve Chairman Ben Bernanke's comments on "renewed turbulence," many traders and investors across sectors now expect the Fed to cut key short-term interest rates when it meets on December 11, according to one currency trader.

"I won't give you all the technical indicators, but basically almost all of them are pointing to a rate cut by the Fed when it meets [on December 11]," Currency Trader Andrew Resnick told BloggingStocks Friday. "The issue now is whether the Fed continues to cut after the December meeting."

Markets rally

Stock rallied early Friday on Bernanke's comments, with the Dow gaining over 80 points to about 13,394 and the Nasdaq gaining about 4 points to 2,674. Meanwhile, the dollar gained slightly, improving to $1.4730 against the euro and rising to 111.07 yen against the Japanese yen.

"Typically, when the Fed indicates it's likely to cut rates that causes the dollar to fall, but in this case, the market is saying 'The Fed is going to help the [U.S.] economy grow faster,' which is bullish for the dollar," Resnick said. Resnick added that he was flat - - or had no currency positions - on Friday.

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Traders now sense Fed rate cut, subprime package originally appeared on BloggingStocks on Fri, 30 Nov 2007 12:46:00 EST. Please see our terms for use of feeds.

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Paulson: home-loan defaults could rise in 2008

Joseph Lazzaro — Wed, 21 Nov 2007 17:00:00 EST

Filed under: Bad News, Citigroup Inc. (C), Bank of America (BAC), Federal Natl Mtge (FNM), Wachovia Corp (WB), Housing, Federal Reserve

U.S. Treasury Secretary Henry Paulson is on the wires again, this time predicting that the number of potential home-loan defaults "will be significantly bigger" in 2008 than in 2007.

In an interview with The Wall Street Journal (subscription required), Paulson said, "The nature of the problem will be significantly bigger next year because 2006 (mortgages) had lower underwriting standards, no amortization, and no down payments. He added that "We'll watch carefully mortgages that will be reset."

Home prices fall

Paulson's comments came before the National Association of Realtors announced that home prices had fallen in 51 of 150 U.S. metropolitan areas in Q3, with the median sales price falling to $220,800 in Q3 2007, compared to $225,300 in Q3 2006. The NAR also announced that home sales fell to an annualized rate of 5.42 million units, including single-family homes and condominiums, compared to a 6.29-million-unit annualized rate a year ago.

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Paulson: home-loan defaults could rise in 2008 originally appeared on BloggingStocks on Wed, 21 Nov 2007 17:00:00 EST. Please see our terms for use of feeds.

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