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From the FDIC:
San Joaquin Bank, Bakersfield, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Business Bank, Ontario, California, to assume all of the deposits of San Joaquin [...]

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Starwood Capital Group gets the assets in a consortium with TPG capital, Perry Capital and WLR LeFrak (another Wilbur Ross company – this guy is cleaning up in the FDIC private equity bonanza).
Here’s the press release:
The Federal Deposit Insurance Corporation (FDIC) has signed a bid confirmation letter to sell a 40 percent equity interest in [...]

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Last week I was at the Clinton Global Initiative Annual Meeting to listen to their ideas on how to solve some of the world’s most pressing problems like poverty and education. I may have more to say about this topic in a later post, but I wanted to first address the too-big-to-fail issue which became [...]

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In the latest inexplicable move to extricate the U.S. banking system from crisis, the FDIC is reportedly close to asking the very banks it regulates for a loan to top up its balances. The plan is “strongly supported by bankers and their lobbyists” according to the New York Times.
Are you kidding me? This is [...]

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Sheila Bair has run out of options to seize banks because the FDIC’s coffers are running dry.  Now she either needs to tap taxpayer money via a loan from the Treasury or she has to raise funds through a special assessment on banks, who are already capital-constrained.
Via Reuters:
U.S. bank regulators are considering tapping a line [...]

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Bair spoke to CNBC’s Maria Bartiromo about the Fed as a single regulator, her agency’s available capital, premiums for deposit insurance, FDIC seizures, private equity buyers and much more. The video is below and runs just under 11 minutes.

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I just received notice that the FDIC Board has approved the phase out of the Temporary Liquidity Guarantee Program (TLGP) in a first clear sign that the U.S. Federal Government has started policy normalisation.
The FDIC Board today adopted a Notice of Proposed Rulemaking (NPR) that reaffirms the expiration of the debt guarantee component of the [...]

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There is an effort underway to install the Federal Reserve as super-regulator for all banks and financial institutions, concentrating power in one institution. I find these efforts one of the most disturbing outgrowths of the financial crisis we have been witnessing. Such a system is sure to increase the power of too big to fail [...]

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The FDIC has just released a press statement outlining the second quarter results for the fund and the financial institutions it regulates.  What was particularly notable in the statement was the decrease in funds available to deal with failed institutions and the increase in the number of problem institutions to 416. This surely indicates that [...]

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With the Federal Deposit Insurance Corporation (FDIC) about to release its latest figures for banks it regulates and its own financial condition, now is a good time to review its role in this crisis. This post is about the FDIC’s role in the credit crisis, how it seizes banks and why I believe this matters.
In [...]