FDIC shuts down Haven Trust and Sanderson State

Another Friday night in America means another bank goes bust. This week, it’s two banks: Haven Trust of Georgia nd Sanderson State of Texas. BB&T is stepping in for the deposits at Haven Trust. And Pecos is taking the deposits at Sanderson. These banks are small, so this is not earth-shattering news.

Below are the pertinent details and links back to the FDIC website

Bankruptcies: US Bancorp takes over at Downey and PFF

Another Friday and another three FDIC Friday Night Specials. This time, the notables were Downey Savings and Loan Association and PFF Bank & Trust which were seized by the FDIC. Downey is especially notable as it has been in the news a lot recently with many speculating about the demise of the parent company Downey Financial. Earlier this evening, Community Bank of Loganville, Georgia was also declared insolvent and seized by the state regulator

Should GE be a AAA company?

The latest news in bailouts involves GE Capital. Apparently, the company has gone begging to the FDIC for a bailout. In fact, the FDIC has offered to back $139 billion in GE Capital debt. I have serious reservations about this move by Sheila Bair. In fact, I am outraged.

First, as I understand it, the FDIC has much less than $139 billion in capital on hand. And they have hundreds of banks to watch that are busy going broke. So, how is it possible that they can guarantee GE Capital’s debt? The answer is they cannot. American taxpayers are what is behind this move just as they were with Fannie and Freddie – not that we will get stuck with the bill as GE is not going under, but the FDIC certainly can’t pay

Two more FDIC Friday Night Specials: Franklin and Security Pacific

It is now a ritual. Every Friday night the FDIC announces which banks have been playing fast and loose with our money and need to be shut down. This week, there are two banks, Security Pacific of Los Angeles and Franklin of Houston. Franklin is the bank run by Lewis Ranieri, of Liar’s Poker fame

Fifth Third takes on assets of Freedom Bank

This past weekend, the FDIC closed yet another bank, Freedom Bank of Bradenton, Florida. The bank had total assets of $287 million and total deposits of $254 million. Super regional Fifth Third, based in Cincinnati, Ohio will take over the insured deposits of the institution and all Freedom branches have opened today as Fifth Third

National City sold

PNC, down only 13% this year-to-date, very good for a bank stock, is acquiring beleaguered Ohio bank NCC for $5.5 billion. The price represents a huge discount to the prevailing market price before open today and NCC was down 34% in early trading. PNC is issuing $7.7 billion in stock and warrants to the U.S.

FDIC: Two Friday night special bankruptcies

They did it again. The FDIC closed down two banks on Friday night after the market had closed. The two bans in question are Meridian Bank of Eldred, Illinois and Main Street Bank of Northville, Michigan. As always seems the case for the FDIC, the two banks in question were relatively small — Meridian had

Wells Fargo to buy Wachovia

The deal everyone first expected to happen is now likely to proceed. Wells Fargo is set to buy Wachovia. Earlier this week, we heard that Wachovia was to be acquired by Citigroup, the beleaguered corporate behemoth that has written down over $50 billion during this credit crisis. What’s more is that Citigroup was only going

S&L crisis chronology and accounting rules

The FDIC has a chronology of the Savings and Loan crisis on its website. I think they do a pretty good job of highlighting all the key points without slanting things for political purposes. See the link at the end of the post for the chronology. The S&L crisis bears keeping in mind as many

Citigroup grabs Wachovia on the cheap

Wachovia Corporation has agreed to be bought out by Citigroup in a deal supported by the U.S. government. Exact terms of the deal are still forthcoming, but this could be seen as a best case scenario for a bank which was increasingly under stress due to the global credit crisis. In 2006 Wachovia’s shares changed

JP Morgan Chase buys WaMu out

JP Morgan Chase has taken over the deposit taking subsidiary of Washington Mutual. The transaction is effective immediately, meaning it has closed. This is the biggest deal in FDIC activity yet. Note: I originally heard this story just before 9PM ET and Yves Smith at naked capitalism has her take on the news. Obviously, this

Ameribank: the latest FDIC bankruptcy takeover

Today, after the markets closed, in another Friday Night Special, the FDIC announced the failure of Ameribank. This represents the 12th bank failure this year and the 14th since the credit crisis began last August. See my list of Bankrupt global financial institutions for major bankruptcies and my Credit Crisis Timeline for all bank writedown