Post Tagged with: "FDIC"
FDIC looks to reign in compensation via insurance levy
FDIC Chairperson Sheila Bair has released her own proposal to compete with a recently floated proposal for a tax on bank compensation. Her proposal calls for linking compensation with FDIC insurance levies as a means of aligning incentives in the banking industry going forward. In contrast, the competing initiative calls for a one-off ‘windfall’ tax
November’s FDIC cease and desist and other administrative orders
Below is a partial list of November FDIC enforcement decisions and orders. I have only included cease-and-desist orders, prompt corrective action notices and termination of insurance orders as these are the signs of banking system distress. FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818 Cease-and-Desist EvaBank, Eva, AL; FDIC-09-341b; Issued 11/18/09 –
First Federal, Santa Monica seized by regulators
This is bank failure #140 and it has $6.1 billion in assets. First Federal Bank of California, a Federal Savings Bank, Santa Monica, California, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption
Another failed bank, this time in Cali
They keep coming and this one is big. It is #139. Capital Bank, La Jolla, California Imperial Capital Bank, La Jolla, 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
More failed banks make 138 on year; uninsured depositors may get stiffed
No buyer for Citizens State Bank, New Baltimore, Michigan. Uninsured depositors may get stiffed. Citizens State Bank, New Baltimore, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, which then appointed Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC created the Deposit Insurance National Bank of
Failure of RockBridge Commercial Bank, Atlanta, Georgia
From the FDIC (emphasis added): The Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of RockBridge Commercial Bank, Atlanta, Georgia. The bank was closed today by the Georgia Department of Banking and Finance, which appointed the FDIC as receiver. The FDIC was unable to find another financial institution to take over
AmTrust Bank seized by regulators after asset stripping
You kind of knew this was going to happen. Given the fact that AmTrust Financial, the holding company filed bankruptcy (see my story here) after a bit of asset stripping, the FDIC was forced to come in and seize the banking subsidiary which was woefully undercapitalized. The FDIC press release says: AmTrust Bank, Cleveland, Ohio,
FDIC Friday night: Three more bankruptcies in Georgia
Yesterday I wrote how bank bankruptcies are crushing small business and households in Georgia. Today we got three more to bring the total to 23 this year, 29 since the subprime crisis began. The Buckhead Community Bank, Atlanta, Georgia As of November 6, 2009, The Buckhead Community Bank had total assets of approximately $874.0 million
Privately-owned AmTrust’s bankruptcy a bad sign for regionals
AmTrust Financial, a privately held regional bank holding company based in Cleveland, has just filed for bankruptcy. With well over $10 billion in assets, AmTrust Bank is fairly large. The circumstances surrounding its failure are unusual in that the Bank Holding Company (BHC) has filed for bankruptcy but the banking subsidiary is still operating. The
October’s FDIC cease and desist and other administrative orders
A lot has been made of the most recent FDIC quarterly report, especially the large increase in problem banks to 550 – at least in the blogospehere; some media outlets seem to be burying this news. Underneath this news are the specific stories about troubled institutions, some of which the FDIC chronicles in its monthly
Why the FDIC’s Resources are Strong and Insured Deposits are “Absolutely Safe”
Is this propaganda? I just received this e-mail from the FDIC’s consumer news with the title above. Personally, I never doubted that unbrokered deposits under $250,000 are safe at U.S. depositary institutions. But, the natural sceptic in me doesn’t like to see someone reaffirm what I thought I already knew. As bank failures are in
Three more FDIC bank seizures
Orion Bank, Naples, Florida As of October 31, 2009, Orion Bank had total assets of $2.7 billion and total deposits of approximately $2.1 billion. The FDIC accepted a 1.5 percent discount from IBERIABANK on the deposits of the failed bank. In addition to assuming all of the deposits of the failed bank, IBERIABANK agreed to