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More Bank Failures
Four more banks went under Friday.
Regulators shut banks in Calif., Ga. and SD
Regulators shut Calif. banks, small banks in Georgia, South Dakota; marks 57 US bank failures
- By Marcy Gordon, AP Business Writer
- On Saturday July 18, 2009, 2:36 am EDT
WASHINGTON (AP) -- Regulators on Friday shut two banks in California and two smaller banks in Georgia and South Dakota, boosting to 57 the number of federally insured banks to fail this year.
The Federal Deposit Insurance Corp. was appointed receiver of the four banks. The two biggest were Temecula Valley Bank, in Temecula, Calif., with $1.5 billion in assets and deposits of about $1.3 billion as of May 31 and Vineyard Bank, National Association, of Rancho Cucamonga, Calif. It had assets of $1.9 billion and $1.6 billion in deposits as of March 31.
The two smaller banks were First Piedmont Bank, based in Winder, Ga., which had about $115 million in assets and $109 million in deposits as of July 6 and BankFirst, based in Sioux Falls, S.D., with around $275 million in assets and $254 million in deposits as of April 30.
The FDIC said all of Temucula's deposits will be assumed by First-Citizens Bank and Trust Company of Raleigh, N.C. The bank also will purchase essentially all of the assets. San Diego-based California Bank & Trust agreed to assume the deposits of Vineyard Bank, excluding about $134 million from brokers. California Bank & Trust will purchase about $1.8 billion of assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and First-Citizens struck a loss-share agreement on about $1.3 billion of Temecula's assets. The agency and California Bank & Trust agreed to a loss-share transaction for about $1.5 billion of Vineyard assets.
All of First Piedmont's deposits will be assumed by First American Bank and Trust Co. of Athens, Ga., which also agreed to buy about $111 million of its assets. Alerus Financial, based in Grand Forks, N.D., agreed to assume all the deposits of BankFirst as well as $72 million in assets.
In addition, the federal agency and First American Bank and Trust entered into a loss-sharing agreement covering about $90 million of First Piedmont Bank's assets. And Beal Bank Nevada, based in Las Vegas, agreed to acquire $177 million of BankFirst's loans.
Friday's move brings the number of bank closings in California this year to eight. The 57 bank failures nationwide this year compare with 25 last year and three in 2007.
More: http://finance.yahoo.com/news/Regula...18720.html?x=0
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Re: More Bank Failures
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Re: More Bank Failures
this should rally the markets even more, eh? :toung:
from www.goingconcern.com:
August 04, 2009 @ 10:32 AM
SEC Memo says Guaranty Bank to be Seized, not Sold
By Teri Buhl
thumbs down col.gifEditor’s Note: Teri Buhl is a Wall Street investigative reporter who has written for the New York Post, Trader Monthly and HousingWire.com. Her big scoops include breaking news on all things wrong at IndyMac, calling out Bob Steel for lying to investors about losses on CNBC, and shining a light on Wells Fargo for manipulating earnings with paper accounting gains. She resides in lower Fairfield County, CT and actually earned an accounting degree from U.S.C.
In another case of the Feds proping up zombie banks, sources have reported that an SEC memo has stated that the FDIC will seize Guaranty Bank (GFG) and it will not be sold as previously rumored.
This continues the trend of bank seizures occurring with virtually no warning. According to one prominent hedge fund manager:
“The problem is that the regulators know that if they call these things anything worse than “well capitalized”…it is a kiss of death. In many ways it is the same issue as rating agencies (curse of the AAA) that know that if they downgrade certain types of companies, they are putting them out of business. As a result, many banks are “well capitalized” until the day they are seized. It is absurd.”
More, after the jump
Austin, Texas based Guaranty Bank just updated its bank reports to show a $1.8 billion loss for the 1st quarter, of which $1.6 bil was due to “Other-Than-Temporary Impairment Charges on Debt and Equity Securities”. Um, not good.
The seizure by the FDIC will hit the regulator’s budget to the tune of at least $5.3 bil according to sources within the OTS. This, on top of what’s going on with Colonial bank failing, should wipe out what’s left of the FDIC’s budget. As a result, they are going to have to borrow from Treasury and then add that cost to our nations banks, which we all know just gets passed on to the taxpayer in the form of higher banking fees.
According to Paul Miller, analyst for FBR Capital Markets, banks could be assessed 0.5 bps this fall in order to fund the FDIC’s latest seizure.
We’ll continue to update this story as we learn more.
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Re: More Bank Failures
Colonial BancGroup shut by regulators
By MARCY GORDON, AP Business Writer Marcy Gordon, Ap Business Writer –
WASHINGTON – Regulators on Friday shut down Colonial BancGroup Inc., a big lender in real estate development that buckled under the collapse of the market. It was the biggest U.S. bank to fail this year, with about $25 billion in assets.
The Federal Deposit Insurance Corp. was appointed receiver of Montgomery, Ala.-based Colonial. The agency approved the sale of Colonial's $20 billion in deposits and about $22 billion of its assets to BB&T Corp. The failed bank's 346 branches in Alabama, Florida, Georgia, Nevada and Texas will reopen at the normal times starting on Saturday as offices of BB&T, the FDIC said.
BB&T, based in Winston-Salem, N.C., operates throughout the Southeast and is considered among the nation's stronger regional banks.
The failure of Colonial is expected to cost the deposit insurance fund — which is financed by assessments on U.S. banks — an estimated $2.8 billion. Colonial was roughly twice the size of BankUnited FSB, a Florida thrift closed in May with $13 billion in assets, though the expected hit to the insurance fund from Colonial is less than that bank's estimated $4.9 billion impact.
The costliest failure was the July 2008 seizure of big California lender IndyMac Bank, from which the insurance fund is estimated to have lost $10.7 billion.
More: http://news.yahoo.com/s/ap/20090814/...9uaWFsYmFuYw--
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Re: More Bank Failures
More than 140 banks have already gone under since 2007:
http://bankimplode.com/
And one source says more than 150 additional banks may be in trouble:
http://bloomberg.com/apps/news?pid=2...d=aTTT9jivRIWE
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Re: More Bank Failures
A total of 582 FDIC insured banks have gone under since 2007.
Including this one, today:
The whole story:
http://bankimplode.com/
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Re: More Bank Failures
Why are BANKS failing? That's an easy question, right?
