9 Banks closed; all posted at once; $19.4B assets
The question is: Will these current bank closings finish bankrupting the FDIC. Is the FDIC already bankrupt? Where and when will the breakpoints occur? Another stock market crash will finish the banks.
Remember about having cash on hand should a bank holiday occur.
Bank closing information
The Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement with U.S. Bank, NA, of Minneapolis, Minnesota, a wholly-owned subsidiary of U.S. Bancorp, to assume all of the deposits and essentially all of the assets of nine failed banks. The nine banks were closed this evening by federal and state bank regulators, which appointed the FDIC as receiver.
The nine banks involved in today's transaction are: Bank USA, National Association, Phoenix, Arizona; California National Bank, Los Angeles, California; San Diego National Bank, San Diego, California; Pacific National Bank, San Francisco, California; Park National Bank, Chicago, Illinois; Community Bank of Lemont, Lemont, Illinois; North Houston Bank, Houston, Texas; Madisonville State Bank, Madisonville, Texas; and Citizens National Bank, Teague, Texas. As of September 30, 2009, the banks had combined assets of $19.4 billion and deposits of $15.4 billion.
The nine banks had 153 offices, which will reopen as branches of U.S. Bank beginning tomorrow during their normal business hours. Depositors of the nine banks will automatically become depositors of U.S. Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until U.S. Bank can fully integrate the deposit records of the nine failed banks.
Over the weekend, depositors of the nine banks can access their money by writing checks or using ATM or debit cards. Checks drawn on the banks will continue to be processed. Loan
customers should continue to make their payments as usual.
The FDIC and U.S. Bank entered into a loss-share transaction on approximately $14.4 billion of the combined purchased assets of $18.2 billion. U.S. Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.
Customers who have questions about today's transaction can contact the FDIC as follows:
Your kidding!
People still keep money in banks?
grant
FDIC Failure Friday: The Lucky Number 9
Forget our babble. Here's the data.
Won't you please give to (not UNICEF) the FDIC fund this Halloween?
http://www.zerohedge.com/article/fdic-failure-friday-lucky-n...
And the score goes up
And the score goes up another notch.
Only a few more thousand to go.
“It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds”
-Sam Adams
“It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds”
-Sam Adams
skf & faz
skf & faz
The wheels are coming off the cart!
Freedom, Prosperity and Peace
Freedom, Prosperity and Peace
How many
does that make for 2009 so far?
By my reckoning: 115
There were 106 before today's closings.
This is very bad, especially as the holidays approach.
Two Month Wait List
I just found out that a bank that wants to be taken over was told by the FDIC and the state that it could take two or more months before they get around to taking them over. It is a more complicated situation then a standard failure. But I think it is typical of CA and NV banks that are in this situaion. They are bleeding and there is no hope even though they are technically very very solvent at this time.
I now realize that it is probably this loss share scenario described in this post is what they are looking for.
More info:California National Bank expected to be seized tonight
California National Bank expected to be seized tonight
October 30, 2009 | 5:05 pm
Bank regulators are expected later today to take over Los Angeles-based California National Bank in what would mark the fourth-largest bank failure in the country this year, according to people familiar with the situation.
The bank, a unit of FBOP Corp., is expected to be acquired by the U.S. Bank unit of Minneapolis-based U.S. Bancorp, with no losses to be incurred by depositors, the sources said. The branches would reopen as usual Saturday or Monday as U.S. Bank branches.
Seven other banks owned by FBOP, a privately held Oak Park, Ill., company, are also expected to be seized by regulators and acquired by U.S. Bank. They include San Diego National Bank, with 28 offices, and San Francisco’s Pacific National Bank, which has 17.
FBOP's owner, billionaire Michael Kelly, didn't return a call seeking comment today.
California National, with $7.1 billion in assets and $5.6 billion in deposits as of June 30, is the fourth-largest commercial bank based in Los Angeles County. Only City National Corp., East West Bancorp and Cathay General Bancorp are larger.
The collapse of FBOP's banks would be the latest in a rash of financial failures that began last year with government takeovers of 25 banks. Before today, 106 banks had failed this year.
California National has had its share of lending problems. As of June 30, the last time it reported its financial results publicly, the bank had five times as much foreclosed property on its books and twice as many non-current loans as it had a year earlier. But the bank's main problem was its loss of about $500 million on heavy investments in Fannie Mae and Freddie Mac preferred shares, securities that were rendered nearly worthless by the government takeover of the giant mortgage firms last year.
U.S. Bancorp has been buying the remains of a number of failed banks. It acquired the remains of Downey Savings of Newport Beach and PFF Bank & Trust of Pomona when those struggling thrifts failed last November. Just this month, it bought 20 Nevada branches from BB&T Corp., which had acquired them as part of its deal to buy Colonial BancGroup Inc. At $25 billion in assets, Montgomery, Ala.-based Colonial was the largest bank to fail this year.
http://latimesblogs.latimes.com/money_co/2009/10/california-...
OMG, 9
it is only friday sometimes they will add a couple more tomorrow.
Prepare & Share the Message of Freedom through Positive-Peaceful-Activism.
I was just looking to post this
Was checking to see if anyone got it yet. They posted really late too.
____________________________________________
The Federal Reserve, Stealing the American Dream since 1913
My News Twitter http://twitter.com/sharpsteve
My YouTube http://www.youtube.com/user/sharpsteve2003
I Vote Ron Paul!
My News Twitter http://twitter.com/sharpsteve
My YouTube http://www.youtube.com/user/sharpsteve2003
steve: Sorry, I just saw this also. So late to post combined..
with Wall Street taking it on the chin today, DOW down 250 points. This may finish bankrupting the FDIC. This is a real mess, especially because of the "positive" false news that: GDP is up and the "recession is over." Bull crap!
This is not good.
Bump for Saturday
Freedom, Prosperity and Peace
Freedom, Prosperity and Peace
+1
____________________________________________
The Federal Reserve, Stealing the American Dream since 1913
My News Twitter http://twitter.com/sharpsteve
My YouTube http://www.youtube.com/user/sharpsteve2003
I Vote Ron Paul!
My News Twitter http://twitter.com/sharpsteve
My YouTube http://www.youtube.com/user/sharpsteve2003