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| Religion Forum Index » Mormon Forum » U.S. Bank Failures Exceed 100 for Year, First Time... |
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| John Manning... |
 Posted: Sat Oct 24, 2009 4:14 pm |
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Another indictment of the Republican economic model...
Oct. 24 (Bloomberg) -- U.S. regulators closed more than 100 banks in a
single year for the first time since 1992, signaling the financial
crisis hasn’t abated for lenders struggling with mounting losses tied to
commercial real estate.
Seven banks -- three in Florida and one each in Georgia, Wisconsin,
Minnesota and Illinois -- were shut yesterday, according to the Federal
Deposit Insurance Corp., pushing this year’s total to 106. That’s the
most since the savings-and-loan crisis led regulators to shutter 179
institutions in 1992.
“It’s very painful, it costs a lot of money, it ruins careers,” said
Gerard Cassidy, an RBC Capital Markets analyst in Portland, Maine. “But
shutting down failed banks and writing off the bad loans is a necessary
solution that has to be done to get the economy and the banking system
back on its feet.”
Banks looking to weather the storm of bad loans have slowed lending to
U.S. consumers and sought ways to preserve and raise capital. U.S.
financial institutions have suffered about $1.1 trillion in credit
losses and writedowns since 2007. The nation’s unemployment rate rose to
9.8 percent in September, the highest since 1983, according to the Labor
Department. A record 531 lenders were seized in 1989, according to the
FDIC’s Web site, which cites data back to 1934.
In August, the FDIC said 416 banks with combined assets of $299.8
billion were on its list of “problem” lenders at mid- year. It isn’t
known whether the banks closed yesterday were among them because the
FDIC doesn’t release the list.
Commercial Loans
Declines in commercial property loans contributed to the collapse of
U.S. banks this year. Losses linked to hotels, malls and condominiums
pose the biggest threat to lenders as financing comes up for renewal,
FDIC Chairman Sheila Bair said last week.
“The most prominent area of risk for rising credit losses at
FDIC-insured institutions during the next several quarters is in CRE
lending,” Bair said to the Senate subcommittee on financial
institutions, referring to commercial real estate.
Banks with assets of $10 billion or less tend to have more commercial
loans than loans tied to residential real estate, Foresight Analytics
LLC analyst Matthew Anderson said.
“The largest banks have a meaningful dollar exposure to commercial real
estate, but it’s a relatively smaller piece of what they do,” Anderson
said. The Oakland, California-based firm maintains a “watch list” of 466
problem banks.
Regulators closed Partners Bank of Naples, Florida, and Stonegate Bank
in Fort Lauderdale, agreed to assume about $64.9 million of deposits
without paying a premium, the FDIC said in an e-mailed statement.
Stonegate also agreed to acquire all $84 million in deposits of
Hillcrest Bank Florida, another Naples- based lender.
Other Bank Closings
Federal regulators closed Flagship National Bank in Bradenton, Florida,
and the FDIC arranged for First Federal Bank of Florida in Lake City to
assume all $175 million in deposits.
State regulators closed American United Bank of Lawrenceville, Georgia,
the FDIC said. Ameris Bank of Moultrie, Georgia, agreed to assume $101
million in deposits, the FDIC said in an e-mailed statement.
Riverview Community Bank of Otsego, Minnesota, was seized. Stillwater,
Minnesota-based Central Bank bought Community Bank’s deposits. State
officials closed Bank of Elmwood in Racine, Wisconsin. Tri City National
Bank of Oak Creek, Wisconsin purchased all of the Bank of Elmwood’s
deposits and almost all of the assets, the FDIC said in a statement.
First Dupage Bank of Westmont, Illinois, was closed by state regulators.
First Midwest Bank of Itasca, Illinois, paid a premium to assume all of
First Dupage’s deposits.
Yesterday’s failures cost the FDIC’s insurance fund almost $357 million.
FDIC Insurance
The FDIC insures deposits of up to $250,000 and the collapse of more
than 120 banks in the past two years has depleted the agency’s
deposit-insurance fund.
The number of bank closings would likely be higher this year if the
FDIC’s fund wasn’t depleted and if the agency had more bank examiners,
RBC’s Cassidy said. The agency shrank under President George W. Bush
before adding employees in the Obama administration. The FDIC has about
6,000 employees now, compared with 21,000 during the savings-and-loan
crisis in 1991, he said.
“We certainly know there are hundreds and hundreds of zombie banks out
there,” Cassidy said. “The only alternative for them is to be seized and
it’s only a matter of manpower and money before they get to it.”
The FDIC has proposed banks pay three years of advance deposit insurance
fees to raise $45 billion and replenish the insurance fund. It costs
anywhere from 25 percent to 30 percent of a failed bank’s assets to shut
it down, Cassidy said.
“There are losses that will have to float through the system not just
for one quarter or two, but for years,” said Paul Miller, a financial
industry analyst at FBR Capital Markets in Arlington, Virginia. “I think
you’ll see closures speed up after they replenish the fund.”
http://www.bloomberg.com/apps/news?pid=20601091&sid=a464OcFDguyw |
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| Ike E 2009... |
| Posted: Sun Oct 25, 2009 7:46 pm |
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"HotelCharlieOne" <hotel_charlie_one at (no spam) yahoo.com> wrote in message
news:Xns9CAF6BBB69592hc1hc1 at (no spam) 198.186.190.61...
Quote: You post this at 0719
Oct. 24 (Bloomberg) -- U.S. regulators closed more than 100 banks in
a single year for the first time since 1992, signaling the financial
crisis hasn't abated for lenders struggling with mounting losses tied
to commercial real estate.
At 0722 you post this
Oct. 25 (Bloomberg) -- The economy in the U.S. probably grew in the
third quarter at the fastest pace in two years as government stimulus
helped bring an end to the worst recession since the 1930s,
economists said before reports this week.
Yeah, I'm not sure where he got his data from, since it was announced
Thursday that the economy SHRANK .4% when economists were expecting GROWTH
of .6%, making this the LONGEST US RECESSION in modern times, which is why
the markets went down Friday. And were STILL losing jobs, homes, and
benefits.
This alleged "jobless recovery" is going to go "POOF" if the US government
doesn't stop futzing around with pointless SOCIALIST pursuits (like a
national healthcare plan) and start focusing on WAGES, BENEFITS, and
PROTECTING AMERICAN JOBS from de facto FOREIGN WAGE SLAVES.
Ike |
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| Ike E 2009... |
| Posted: Sun Oct 25, 2009 7:48 pm |
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"John Manning" <jrobertm at (no spam) terra.com.br> wrote in message
news:8Y-dnbC-bLFvDHnXnZ2dnUVZ_tidnZ2d at (no spam) giganews.com...
[snip]
Quote: You have to be smart enough to tell the difference between specific bank
failures and the vastly larger picture of the GDP and the economy as a
whole.
Why?
They BOTH WENT DOWN THURSDAY, goofball.
I don't know WHERE Bloomberg got its data, but the US GOVERNMENT said the
economy SHRANK another .4% when they were expecting GROWTH of .6%
Ike |
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The time now is Sat Nov 28, 2009 3:08 pm
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