Post Tagged with: "regionals"
The Economy’s Vicious Cycle for Michigan Banks and Business
The video below from the Wall Street Journal gets at the heart of why the bailouts have been so toxic for the economy. Banks, still laden with existing bad loans to small businesses, are unwilling to make new ones. Businesses, unable to receive credit, cannot expand or must downsize. This in turn puts a squeeze
Unprecedented moral suasion from regulators on small businesses lending
Today, I received a press release from the complete list of federal government regulators of the financial industry which all but ordering banks to lend to small businesses. Clearly, regulators are concerned as comments by Marc Chandler intimated in my last post. The regulators supporting the press release were the following: The Board of Governors
Short sale fraud
CNBC’s Diana Olick has the breaking story on alleged fraud in the mortgage industry. She has been writing about this for a few days now. See Big Banks Accused of Short Sale Fraud – Realty Check with Diana Olick at CNBC’s website. Basically, second liens on properties like home equity loans have a blocking interest
It’s a wonderful life: move your money
I have been largely silent about the recent populist call to arms by Arianna Huffington and Rob Johnson. The duo advise Americans to withdraw their money from bank accounts at too-big-to-fail financial institutions and deposit them in a community bank. And they present a comprehensive list of community banks vetted by star bank analyst Chris
Community banks risk averse ahead of Obama meeting
This clip will give you a better indicator of small lenders’ agenda as they met with the President to talk about expanding lending. The only commentary I would note is the desire by the IBCA President to allow the FDIC to keep its regulatory role. See also Community Bankers Meet With Obama as Regulation Fight
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,
Bank failures in Georgia crushing small business and home owners
Recently, I have been writing a lot about regional banks and the capital problems they have been having. This is having a direct impact on lending capacity available to small and medium sized businesses (SMEs) and households. As a result, a lot of workers are losing jobs in these smaller enterprises. And the unemployment statistics
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
The small bank – big bank dichotomy
After a huge fall off in credit consistent with the fall in nominal GDP, we are seeing credit stabilise at a lower level. Debt to GDP ratios may not be lower, but as GDP is lower, so too is credit in the system. Yet there is a large difference between the haves and the have-nots,
Ms. Watkins, why does Charlie have lit dynamite?
You are a teacher at a local primary school. Each school day you and some of your colleagues watch over the children at the school playground to make sure all of the children follow the rules and keep their hands to themselves. Your role is to keep the children safe. Mind you, this is a
How big banks earned so much money this quarter
We are a few weeks into earnings season and it should be abundantly clear that financial institutions are firing on all cylinders. In fact, financials are leading the broader market for the first time since 1993. Yet, loan losses have been absolutely enormous. What gives? The Great Giveaway is the essence of recent market performance
Meredith Whitney: Regardless of stress tests, banks will still need more capital
The Bloomberg video below makes it seem that Whitney believes the stress tests are a sham. She says the tests are a theoretical exercise whereby banks ask: “what will our earnings power be in two years after we sell off these ‘toxic’ assets?” She goes on to suggest that the answer to this question will