The FDIC took over three banks yesterday, bringing the total number of bank failures so far this year to 22. As I posted, the FDIC likes to close banks on Friday after hours so they can reopen as branches of the acquiring bank on the following Monday morning. But the U.S. better be working overtime this weekend because Citigroup (NYSE: C) is going to need a merger partner or a government rescue to keep it from becoming history's biggest bank failure.

Of the three banks that failed Friday, two were in California -- Downey Savings and Loan Association (with $12.8 billion in assets and deposits of $9.7 billion), based in Newport Beach, and PFF Bank & Trust of Pomona (with assets of $3.7 billion and $2.4 billion in deposits) -- and the third was in Georgia: The Community Bank, with $681 million in assets and $611.4 million in deposits in Loganville.

In each case, the FDIC arranged for a healthier bank to take over the deposits, branches, and some of the assets of the failed one. U.S. Bancorp (NYSE: USB) acquired the deposits of the two California banks that were brought down by Option ARM mortgages -- which allow a borrower to skip payments and add the amount to the loan principle -- and housing construction loans. Bank of Essex, of Tappahannock, Va., bought all the bank deposits and $84.4 million of The Community Bank's assets -- the FDIC took on the rest.

Continue reading Bank Failure Count: FDIC closes 22nd bank of 2008

Bank Failure Count: FDIC closes 22nd bank of 2008 originally appeared on BloggingStocks on Sat, 22 Nov 2008 09:40:00 EST. Please see our terms for use of feeds.

"Warren Buffett's holding company, Berkshire Hathaway (NYSE: BRK.B), has been the single greatest investment of our lifetimes," says Alexander Green, noting, "His compounded annual gain from 1966 to 2007 was 21.1% vs. 10.3% or the S&P 500."

In the Oxford Insight, the investment director explains, "It is now time to buy the 'ultimate no-brainer'." Here's his assessment.

"Despite this strong long-term performance, Buffett experienced a rare earnings letdown during the second quarter of this year.

"Although revenue increased 10% to $29.3 billion, insurance related write-downs hurt the company's bottom line. Still, the shortfall was far from cataclysmic. For the quarter, earnings fell 7.6% to $2.88 billion.

"Despite the shortfall, the company still maintains a top-notch credit rating and has over $28 billion in cash, a war chest for the world's greatest investor. How has Buffett been so successful? He takes a disciplined value approach to investing. And he sticks with it.

Continue reading Oxford Club bet on Buffett: A 'no-brainer'

Oxford Club bet on Buffett: A 'no-brainer' originally appeared on BloggingStocks on Fri, 05 Sep 2008 16:50:00 EST. Please see our terms for use of feeds.