Dutch SNS Bank Fails On Real Estate Losses: First ‘Too Big To Fail’ Nationalization In Five Years

Dutch SNS Bank Fails On Real Estate Losses: First “Too Big To Fail” Nationalization In Five Years (ZeroHedge, Feb 1, 2013):

Earlier today we got one hint that not all is well in the European banking system, as far less than the expected €200 billion was tendered back to the ECB in the second LTRO repayment operation, when just 27 banks paid back some €3.5 billion. Another, perhaps far bigger one, comes courtesy of AAA-rated Netherlands, which just experienced its first bank failure since 2008 following the nationalization of SNS Reall NV, as the previously announced bad loan writedown finally claimed the bank. As a reminder, half a month ago we got news that “SNS Reaal NV (SR), a Dutch bank and insurer struggling to wind down a money-losing real estate lending unit, fell the most in more than two months after a report said it may have to post a 1.8 billion-euro ($2.4 billion) writedown on property-finance loans.” Today we got the inevitable conclusion: nationalization, one which will cost taxpayers about $5 billion to avoid contagion to what many see as Europe’s “strongest” banking system.

From Bloomberg:

The move, aimed “at stabilizing the SNS Reaal group,” will cost taxpayers 3.7 billion euros ($5 billion), the Dutch Finance Ministry said in a statement today. SNS’s property- finance unit will be separated from the company.

Read moreDutch SNS Bank Fails On Real Estate Losses: First ‘Too Big To Fail’ Nationalization In Five Years

14 Eye Opening Statistics Which Reveal Just How Dramatically The US Economy Has Collapsed Since 2007

There are always some that have a lot to celebrate:

Warren Buffett’s $600 Million INTEREST-FREE Loan From US Taxpayers Or How The Wealthiest Americans Enrich Themselves At Taxpayers Expense

And how about ‘main street’?

US Census: Number of Poor People May Be Millions Higher

US: Food Stamps Used by Record 43.2 Million in October, Up 15 Percent From A Year Ago

Geithner Warns Lawmakers That Failure to Raise US Debt Limit ‘Precipitates a Default by the United States’ With Catastrophic Economic Consequences

US Consumer Bankruptcies Hit 5-year High in 2010

Hiding The Greatest Depression: How The US Government Does It:

The real US unemployment rate is not 9.8% but between 25% and 30%. That is a depression level of job losses – so why doesn’t it look like a depression for many people?  How can so large of a statistical discrepancy exist, and how is it that holiday shopping malls are so crowded in a depression?

This is the Greatest Depression.



The Great Depression

Most Americans have become so accustomed to the “new normal” of continual economic decline that they don’t even remember how good things were just a few short years ago.  Back in 2007, unemployment was very low, good jobs were much easier to get, far fewer Americans were living in poverty or enrolled in welfare programs and government finances were in much better shape.  Of course most of this prosperity was fueled by massive amounts of debt, but at least times were better.  Unfortunately, things have really deteriorated over the last several years.  Since 2007, unemployment has skyrocketed, foreclosures have set new all-time records, personal bankruptcies have soared and U.S. government debt has gotten completely and totally out of control.  Poll after poll has shown that Americans are now far less optimistic about the future than they were in 2007.  It is almost as if the past few years have literally sucked the hope out of millions upon millions of Americans.

Sadly, our economic situation is continually getting worse.  Every month the United States loses more factories.  Every month the United States loses more jobs.  Every month the collective wealth of U.S. citizens continues to decline.  Every month the federal government goes into even more debt.  Every month state and local governments go into even more debt.

Unfortunately, things are going to get even worse in the years ahead.  Right now we look back on 2005, 2006 and 2007 as “good times”, but in a few years we will look back on 2010 and 2011 as “good times”.

We are in the midst of a long-term economic decline, and the very bad economic choices that we have been making as a nation for decades are now starting to really catch up with us.

So as horrible as you may think that things are now, just keep in mind that things are going to continue to deteriorate in the years ahead.

But for the moment, let us remember how far we have fallen over the past few years.  The following are 14 eye opening statistics which reveal just how dramatically the U.S. economy has collapsed since 2007….

#1 In November 2007, the official U.S. unemployment rate was just 4.7 percent.  Today, the official U.S. unemployment rate is 9.4 percent.

#2 In November 2007, 18.8% of unemployed Americans had been out of work for 27 weeks or longer.  Today that percentage is up to 41.9%.

#3 As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer.  Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#4 Nearly 10 million Americans now receive unemployment insurance, which is almost four times as many as were receiving it back in 2007.

#5 More than half of the U.S. labor force (55 percent) has “suffered a spell of unemployment, a cut in pay, a reduction in hours or have become involuntary part-time workers” since the “recession” began in December 2007.

#6 According to one analysis, the United States has lost a total of approximately 10.5 million jobs since 2007.

#7 As 2007 began, only 26 million Americans were on food stamps.  Today, an all-time record of 43.2 million Americans are enrolled in the food stamp program.

#8 In 2007, the U.S. government held a total of $725 billion in mortgage debt.  As of the middle of 2010, the U.S. government held a total of $5.148 trillion in mortgage debt.

#9 In the year prior to the “official” beginning of the most recent recession in 2007, the IRS filed just 684,000 tax liens against U.S. taxpayers.  During 2010, the IRS filed over a million tax liens against U.S. taxpayers.

#10 From the year 2000 through the year 2007, there were 27 bank failures in the United States.  From 2008 through 2010, there were 314 bank failures in the United States.

#11 According to the U.S. Department of Housing and Urban Development, the number of U.S. families with children living in homeless shelters increased from 131,000 to 170,000 between 2007 and 2009.

#12 In 2007, one poll found that 43 percent of Americans were living “paycheck to paycheck”.  Sadly, according to a survey released very close to the end of 2010, approximately 55 percent of all Americans are now living paycheck to paycheck.

#13 In 2007, the “official” federal budget deficit was just 161 billion dollars.  In 2010, the “official” federal budget deficit was approximately 1.3 trillion dollars.

#14 As 2007 began, the U.S. national debt was just under 8.7 trillion dollars.  Today, the U.S. national debt has just surpassed 14 trillion dollars and it continues to soar into the stratosphere.

So is there any hope that we can turn all of this around?

Unfortunately, the massive amount of debt that we have piled up as a society over the last several decades has made that impossible.

If you add up all forms of debt (government debt, business debt, individual debt), it comes to approximately 360 percent of GDP.  It is the biggest debt bubble in the history of the world.

If the federal government and our state governments stop borrowing and spending so much money, our economy would collapse.  But if they keep borrowing and spending so much money they will continually make the eventual economic collapse even worse.

We are in the terminal stages of the most horrific debt spiral the world has ever seen, and when the debt spiral gets stopped the house of cards is going to finally come down for good.

So enjoy these times while you still have them.  Yes, today is not nearly as prosperous as 2007 was, but today is most definitely a whole lot better than 2015 or 2020 is going to be.

Sadly, we could have avoided this financial disaster completely if only we had listened more carefully to those that founded this nation.  Once upon a time, Thomas Jefferson said the following….

I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.

January 10th, 2011

Source: Economic Collapse Blog


FDIC Seizes 7 More Banks; US Bank Failures In 2010 Rise To 139

WASHINGTON (AP) — Regulators on Friday shut down a total of seven banks in Florida, Georgia, Illinois, Kansas and Arizona, lifting to 139 the number of U.S. banks that have fallen this year as soured loans have mounted and the economy has sputtered.

The Federal Deposit Insurance Corp. took over the banks, the largest of which by far was Hillcrest Bank, based in Overland Park, Kan., with $1.6 billion in assets.

A newly chartered bank subsidiary of Boston-based NBH Holdings Corp. was set up to take over Hillcrest’s assets and deposits. The new subsidiary is called Hillcrest Bank N.A.

The FDIC and Hillcrest Bank N.A. agreed to share losses on $1.1 billion of the failed bank’s assets. Its failure is expected to cost the deposit insurance fund $329.7 million.

Also shuttered were First Bank of Jacksonville in Jacksonville, Fla., with $81 million in assets; Progress Bank of Florida, based in Tampa, with $110.7 million in assets; First National Bank of Barnesville in Barnesville, Ga., with $131.4 million in assets; Gordon Bank of Gordon, Ga., with $29.4 million in assets; First Suburban National Bank in Maywood, Ill., with $148.7 million in assets; and First Arizona Savings, based in Scottsdale, Ariz., with assets of $272.2 million.

Read moreFDIC Seizes 7 More Banks; US Bank Failures In 2010 Rise To 139

FDIC Seizes 7 More Banks; US Bank Failures In 2010 Rise To 103

Related article:

FDIC: ‘Problem’ Banks at 775, or 10 Percent of All US Banks

The FDIC is broke … and of course your money is safe and insured up to $250,000.

Sure! Trust the government!


* Seven small banks closed

* Faster pace of failures than 2009

bank-failure

WASHINGTON, July 23 (Reuters) – U.S. bank failures reached 103 so far in 2010 on Friday as regulators seized seven small banks, a faster pace of closures than last year when the century mark was not reached until October.

Bank failures are expected to peak this quarter, with the industry slowly recovering from large portfolios of bad loans, many tied to commercial real estate.

The banks seized on Friday were Sterling Bank of Lantana, Florida; Crescent Bank and Trust Company of Jasper, Georgia; Williamsburg First National Bank of Kingstree, South Carolina; Thunder Bank of Sylvan Grove, Kansas; Community Security Bank of New Prague, Minnesota; SouthwestUSA Bank of Las Vegas, Nevada and Home Valley Bank of Cave Junction, Oregon, according to the Federal Deposit Insurance Corp.

The largest of the seven banks was Crescent Bank and Trust with 11 branches and about $1.01 billion in total assets and $965.7 million in total deposits. The smallest was Thunder Bank with just two branches and $32.6 million in total assets and $28.5 million in deposits.

The FDIC estimated the seven failures would add about $431 million to the tab for its deposit insurance fund.

Read moreFDIC Seizes 7 More Banks; US Bank Failures In 2010 Rise To 103

FDIC Seizes 7 More Banks; US Bank Failures In 2010 Rise To 37

Related articles:

FDIC Reports 27 Percent Jump In Problem US Banks

FDIC Report: ‘We Were Broke And Getting Broker’


Regulators shut 7 banks in Alabama, Georgia, Minnesota, Ohio and Utah

bank-failure

WASHINGTON (AP) — Regulators on Friday shut down seven banks in five states, bringing to 37 the number of bank failures in the U.S. so far this year.

The closings follow the 140 that succumbed in 2009 to mounting loan defaults and the recession.

The Federal Deposit Insurance Corp. took over First Lowndes Bank, in Fort Deposit, Ala.; Appalachian Community Bank in Ellijay, Ga.; Bank of Hiawassee, in Hiawassee, Ga.; and Century Security Bank in Duluth, Ga.

The agency also closed down State Bank of Aurora, in Aurora, Minn.; Advanta Bank Corp., based in Draper, Utah; and American National Bank of Parma, Ohio.

The FDIC was unable to find a buyer for Advanta Bank, which had $1.6 billion in assets and $1.5 billion in deposits. The regulatory agency approved the payout of the bank’s insured deposits and it said checks to depositors for their insured funds will be mailed on Monday.

The failure of Advanta Bank is expected to cost the federal deposit insurance fund $635.6 million.

For the other banks:

Read moreFDIC Seizes 7 More Banks; US Bank Failures In 2010 Rise To 37

FDIC Seizes 4 More Banks; US Bank Failures In 2010 Rise To 26

Related articles:

FDIC Reports 27 Percent Jump In Problem US Banks

FDIC Report: ‘We Were Broke And Getting Broker’


bank-failure

March 6 (Bloomberg) — Regulators shut banks in Maryland, Illinois, Florida and Utah, pushing the number of U.S. failures to 26 this year and placing more pressure on the Federal Deposit Insurance Corp. to dispose of a growing pile of toxic assets.

The FDIC was unable to find buyers for two banks — Centennial Bank in Ogden, Utah, and Waterfield Bank of Germantown, Maryland — according to statements posted on the agency’s Web site. In the largest of yesterday’s failures by assets, Boca Raton, Florida-based Sun American Bank was purchased by First-Citizens Bank & Trust Co.

“South Florida is a great market for our company, especially with our focus on individuals, small- to mid-sized businesses and the medical community,” Frank B. Holding Jr., chief executive officer of First-Citizens, said in a statement.

Lenders are collapsing at the fastest pace in 17 years amid losses on residential and commercial real estate loans made at the height of the market. U.S. “problem” banks climbed to the highest level since 1992 in the fourth quarter and FDIC Chairman Sheila Bair warned Feb. 23 that the pace of failures will “pick up” and exceed last year’s total of 140.

Read moreFDIC Seizes 4 More Banks; US Bank Failures In 2010 Rise To 26

FDIC Seizes 4 More Banks; US Bank Failures In 2010 Rise To 20

The banks are bracing themselves for the coming commercial real estate meltdown:

US Banks Facing $1.4 Trillion Crisis Over Commercial Real Estate Loans

Expect more than 1000 banks to fail, when the real tsunami hits:

Bank CEO: 1000 Banks to Fail In Next Two Years

The problem is that the FDIC is broke:

FDIC insurance fund is now broke, closes quarter $8.2 billion in debt

FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund

If the FDIC runs out of money, then Timmy Geithner will surely help!???:

Obama Signs Law Raising Public Debt Limit from $12.4 Trillion to $14.3 Trillion

Obama’s $3.8 Trillion Budget: Tax Rise of $1.9 Trillion for Richer Americans, Businesses

The US is totally broke.

What could possibly go wrong?

Rep. Ron Paul At CPAC 2010: ‘We Are On The Brink Of A Financial Cataclysmic Event.’


bank-failure

WASHINGTON — Regulators shuttered four banks Friday, from Florida to California, as local banks continue to buckle across the country.

Twenty banks have toppled so far in 2010 and 185 have failed since January 2008, with regulators expecting to close dozens more by the end of this year. The Federal Deposit Insurance Corp. estimated the four failures Friday cost its deposit insurance fund more than $1 billion.

The largest bank to fail Friday was the 10-branch La Jolla Bank in California. Its $3.6 billion of assets made it the biggest bank to fail in 2010. The FDIC sold all of La Jolla’s deposits and virtually all of its assets to OneWest FSB, a thrift created last year after investors bought up pieces of the failed IndyMac Bank. The FDIC and OneWest agreed to share future losses on $3.3 billion of the La Jolla Bank’s deposits.

Read moreFDIC Seizes 4 More Banks; US Bank Failures In 2010 Rise To 20

FDIC Seizes Six More Banks; US bank failure tally hits 15 for 2010

Yesterday’s actions cost the fund $1.86 billion, the FDIC said.

Source: BusinessWeek


Regulators shut down banks in 5 states

bank-failure

(WASHINGTON) –Regulators shut down a big bank in California on Friday, along with two banks in Georgia and one each in Florida, Minnesota and Washington. That brought to 15 the number of bank failures so far in 2010 atop the 140 shuttered last year in the punishing economic climate.

The failure of Los Angeles-based First Regional Bank, with nearly $2.2 billion in assets and $1.9 billion in deposits, is expected to cost the federal deposit insurance fund $825.5 million.

The Federal Deposit Insurance Corp. took over the bank as well as the others: First National Bank of Georgia, based in Carrollton, Ga., with $832.6 million in assets and $757.9 million in deposits and Community Bank and Trust of Cornelia, Ga., with $1.2 billion in assets and $1.1 billion in deposits; Florida Community Bank of Immokalee, Fla., with $875.5 million in assets and $795.5 million in deposits; Marshall Bank of Hallock, Minn., with $59.9 million in assets and $54.7 million in deposits; and American Marine Bank of Bainbridge Island, Wash., with $373.2 million in assets and $308.5 million in deposits.

Read moreFDIC Seizes Six More Banks; US bank failure tally hits 15 for 2010

FDIC Seizes Five Banks; US bank failure tally hits 9 for 2010

And the FDIC is broke.


bank-failure

Regulators seized five banks in Florida, Missouri, New Mexico, Oregon and Washington, lifting the total number of failures this year to nine as financial institutions struggle with loan defaults and a weak economy.

Two of the five institutions had assets of more than $1 billion. The Florida bank, in Miami, was sold to an investment group that includes former North Fork Bancorp Chief Financial Officer Dan Healy. The deposits and assets of the New Mexico bank went to Texas billionaire Andrew Beal.

The Federal Deposit Insurance Corp. estimated the Friday closings will cost the agency’s cash-strapped deposit-insurance fund a total of $531.7 million.

Since 2008, regulators have shut down 174 banks, and the expectation is that failures will continue to accelerate in 2010 amid heightened regulatory scrutiny. FDIC Chair Sheila Bair has predicted that failures will “peak” this year and then “subside.”

Read moreFDIC Seizes Five Banks; US bank failure tally hits 9 for 2010

FDIC seizes Horizon Bank, first US bank failure of 2010

bank-failure

WASHINGTON, Jan 8 (Reuters) – U.S. regulators closed Horizon Bank (HRZB.O) of Bellingham, Washington, on Friday, kicking off what has been forecast as a peak year for small bank failures.

The Federal Deposit Insurance Corp said Horizon Bank had approximately $1.3 billion in total assets and $1.1 billion in total deposits as Sept. 30.

Friday’s bank failure is expected to cost the FDIC’s insurance fund a total of $539.1 million.

The 18 branches of Horizon Bank will reopen during their normal business hours beginning on Saturday as branches of Washington Federal Savings and Loan Association and deposits will continued to be insured by the FDIC.

Community banks are facing persistent pressure from deteriorating loans, many tied to commercial real estate projects that have collapsed or are in decline.

Regulators closed 140 banks last year, the highest level since 1992 when officials were still cleaning up from the savings and loan crisis. That compares with 25 in 2008 and only three in 2007.

Read moreFDIC seizes Horizon Bank, first US bank failure of 2010

FDIC Party: Seven US Banks Are Seized, Bank Failure Tally Reaches 140

Related articles:

FDIC insurance fund is now broke, closes quarter $8.2 billion in debt

FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund

If the FDIC runs out of money, then Timmy will surely help:

US National Debt Tops Debt Limit

Let’s see what happens if 500 (or even 1000) banks will fail in 2010:

Bank CEO: 1000 Banks to Fail In Next Two Years


bank-failure1

Dec. 19 (Bloomberg) — Seven U.S. banks were seized by regulators, bringing this year’s total of failed lenders to 140 as financial companies are tested by the recession and the Federal Deposit Insurance Corp. anticipates more shutdowns.

Banks with $14.4 billion in total assets were closed yesterday in six U.S. states, the FDIC said in statements on its Web site. The agency is overseeing the dissolution of banks at the fastest pace in 17 years.

Two of the closures were in California. The assets and deposits of Federal Bank of California in Santa Monica were bought by closely held OneWest Bank, which acquired IndyMac Federal Bank this year. Imperial Capital Bank was bought by City National Corp., the Beverly Hills-based parent of City National Bank, which expanded in Southern California with the purchase.

“Imperial Capital Bank is a very good fit for City National, given that eight of its nine locations are in communities we serve,” City National Chief Executive Officer Russell Goldsmith said in a statement. “We’re pleased to contribute to the increased stability of the banking system.”

Federal Bank was the biggest lender seized yesterday, with $6.1 billion of assets and $4.5 billion in deposits, according to the FDIC. Based in La Jolla, Imperial Capital had assets of $4 billion and $2.8 billion in deposits.

Earlier this week, the FDIC boosted its 2010 budget by 56 percent to $4 billion to manage further shutdowns. The total budget will increase from $2.6 billion and the set-aside for bank failures doubles to $2.5 billion over this year, according to a proposal approved by the FDIC board. The agency staff will increase to 8,653 next year from 7,010 this year.

‘Larger Number’ of Failures

The budget “will ensure that we are prepared to handle an ever-larger number of bank failures next year, if that becomes necessary,” FDIC Chairman Sheila Bair said in a statement. Yesterday’s bank closings will cost the agency about $1.8 billion, according to the FDIC statements.

Read moreFDIC Party: Seven US Banks Are Seized, Bank Failure Tally Reaches 140

FDIC seizes 3 more banks, US bank failure tally reaches 133

Related articles:
FDIC insurance fund is now broke, closes quarter $8.2 billion in debt
FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund


Regulators close regional banks in Florida, Kansas and Arizona, at a cost of $252.1 million to the FDIC.

money-banks

NEW YORK (CNNMoney.com) — Regulators closed regional banks in three U.S. states Friday, bringing the total number of failed banks this year to 133, the Federal Deposit Insurance Corp. said.

Customers of the failed banks are protected. The FDIC, which has insured bank deposits since the Great Depression, currently covers accounts up to $250,000.

Read moreFDIC seizes 3 more banks, US bank failure tally reaches 133

FDIC Shuts Down 5 More Banks, Tally Hits 120 As United Commercial Bank Fails

Related article: Big California bank fails, has China branches (Reuters)


money-banks

WASHINGTON — U.S. regulators closed five more banks on Friday, reaching 120 for the year, as souring loans and the lingering effects of last year’s financial crisis continued to weigh on the nation’s financial institutions.

San Francisco-based United Commercial Bank became the fifth and largest bank to be taken over by regulators on Friday evening, as annual failures hit levels not seen since the savings and loan crisis of the early 1990s. There were 25 bank failures in 2008, and three in 2007.

The Federal Deposit Insurance Corp. said in a release that East West Bank of Pasadena, Calif., would take over United Commercial’s roughly $7.5 billion in deposits, as well as $10.2 billion in assets. The deal includes all of United Commercial’s branches in the U.S., a branch in Hong Kong, and a subsidiary headquartered in Shanghai, China.

The agency said that it would continue to protect the bank’s domestic deposits, while Hong Kong deposits would be covered by the Hong Kong Deposit Protection Scheme. U.S. regulators are also working with their counterparts in China on the bank’s operations in that country, the agency said.

The failure is estimated to cost the FDIC’s deposit insurance fund an estimated $1.4 billion. That’s represents a significant hit for the fund, which has come under increasing pressure this year as failure costs have topped the agency’s initial loss projections. Federal regulators are currently considering a proposal that would have U.S. banks pay three years worth of premiums in advance in order to raise $45 billion to provide more liquidity to the fund.

Read moreFDIC Shuts Down 5 More Banks, Tally Hits 120 As United Commercial Bank Fails

US: 9 more banks fail; $2.5 billion hit for FDIC fund

FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund.


money-banks

SAN FRANCISCO (MarketWatch) — Nine more U.S. banks, all owned by the same Illinois holding company, were closed Friday by regulators, and the Federal Deposit Insurance Corp. said U.S. Bank of Minneapolis would assume their deposits.

The closings brought the total to 115 in 2009 — the first year since 1992 that more than 100 banks have gone under.

The banks as of Sept. 30 had combined assets of $19.4 billion and deposits of $15.4 billion, the FDIC said.

The deposit insurance fund will take an estimated $2.5 billion hit, the FDIC said.

All nine banks were subsidiaries of FBOP Corp., a holding company based in the Chicago suburb of Oak Park, Ill., according to the FDIC.

Read moreUS: 9 more banks fail; $2.5 billion hit for FDIC fund

US Bank Failures Stack Up: Now 106 For 2009

Banks in Florida, Georgia, Illinois, Minnesota and Wisconsin, were shuttered, costing the FDIC an estimated $356.6 million.

money-banks

NEW YORK (CNNMoney.com) — The tally of bank failures easily broke past the No. 100 milestone on Friday night, with regulators announcing the year’s 106th closure.

That’s more than four times the number that were closed in 2008, and the highest total since 1992, when 181 banks failed.

Earlier on Friday evening the dubious honor of the 100th failure went to Partners Bank, of Naples, Fla., which had $65.5 million in assets, according to the Federal Deposit Insurance Corp.

The 101st failure was American United Bank, of Lawrenceville, Ga., which had $111 million in assets.

The 102nd failure was another Naples, Fla., institution: Hillcrest Bank Florida, which had $83 million in assets.

The 103rd closure was Bradenton, Fla.-based Flagship National Bank, with $190 million in assets.

The 104th was Bank of Elmwood, based in Racine, Wis., which had $327.4 million in assets.

The 105th failure was Riverview Community Bank of Otsego, Minn., with $108 million in assets.

The 106th failure was First Dupage Bank in Westmont, Ill., which had $279 million in assets.

Read moreUS Bank Failures Stack Up: Now 106 For 2009

US bank failure tally hits 99 for 2009; FDIC fund in the red

money-banks

Related articles:
FDIC bank fund in the red until 2012 (CNN Money):
Last month, the agency painted an even more dire picture, estimating that the fund is currently in the red after taking into account future bank failures it anticipates will happen.
Bank CEO: 1000 Banks to Fail In Next Two Years (CNBC)
Meredith Whitney: There Will Be More Than 300 Bank Failures (Bloomberg)

But your money is absolutely safe and secure. Oh, wait a minute:
FDIC Insuring 8200 Banks with $9 Trillion in Deposits and ZERO in the Deposit Insurance Fund.


fdic-logojpg

NEW YORK (AP) – Regulators shut down San Joaquin Bank in California on Friday, marking the 99th failure this year of a federally insured bank.

The Federal Deposit Insurance Corp. was appointed receiver of San Joaquin Bank, based in Bakersfield, Calif. It had $775 million in assets and $631 million in deposits as of Sept. 29.

The FDIC said the bank’s deposits will be assumed by Citizens Business Bank, based in Ontario, Calif. Its five branches will reopen Monday as branches of Citizens Business Bank.

San Joaquin Bank’s failure is expected to cost the FDIC’s insurance fund $103 million.

(The mantra:)
Depositors’ money is not in danger. The FDIC is backed by the government, and deposits are guaranteed up to $250,000 per account.

But the deposit insurance fund has fallen into the red. The FDIC board recently proposed to have U.S. banks prepay about $45 billion of their insurance premiums – three years’ worth.

Read moreUS bank failure tally hits 99 for 2009; FDIC fund in the red

FDIC Seizes Three More Banks, Bringing Failure Toll This Year to 98

Oct. 3 (Bloomberg) — Banks in Minnesota, Michigan and Colorado were shut by regulators, bringing this year’s toll of U.S. failures to 98 amid the worst financial crisis in more than seven decades.

Jennings State Bank of Spring Grove, Minnesota, and Warren Bank of Warren, Michigan, were closed by state regulators and the Federal Deposit Insurance Corp. was named receiver, the agency said yesterday in statements on its Web site. Southern Colorado National Bank of Pueblo was closed by the Office of the Comptroller of the Currency, the FDIC said.

“Deposits will continue to be insured by the FDIC,” the agency said. “There is no need for customers to change their banking relationship to retain their deposit insurance coverage.”

Regulators this year have closed the most banks since the savings-and-loan crisis of the early 1990s as lenders struggle with mounting losses on real-estate loans. U.S. job losses accelerated last month as the unemployment rate climbed to the highest level since 1983.

U.S. payrolls dropped by 263,000 in September, exceeding the median forecast in a Bloomberg survey, the Labor Department said yesterday. The jobless rate rose to 9.8 percent from 9.7 percent in August, while working hours matched a record low.

The FDIC deposit-insurance fund has been depleted by 120 bank failures in the past two years. The agency proposed asking banks to prepay three years of premiums to raise $45 billion. Yesterday’s failures cost the fund $293.3 million.

Read moreFDIC Seizes Three More Banks, Bringing Failure Toll This Year to 98

3 more down: 2009 Bank failure tally hits 92

Do you believe that the FDIC is able to protect every customer account up to $250,000?

Do you believe that your money is safe?

Banks on Sick List Top 400:
The FDIC’s insurance fund, which guards $6.2 trillion in U.S. deposits, fell to $10.4 billion at the quarter’s end, the lowest since mid-1993.
(AUGUST 28, 2009; Source: The Wall Street Journal)

Let me repeat this:
The FDIC guards $6.2 trillion in U.S. deposits with an insurance fund of $10.4 billion.

(Now the insurance fund is a lot less than $10.4 billion.)

Do you still believe that your money is safe?

Bank CEO: 1000 Banks to Fail In Next Two Years (CNBC)

Meredith Whitney: There Will Be More Than 300 Bank Failures (Bloomberg)

The only thing that will bring the system down immediately is a run on the banks and that is why the government/the Federal Reserve/the banksters play the confidence game on you.

The question is do you buy it?

This crisis is not over. It has just started. The worst is yet to come


Regulators close banks in Illinois, Minnesota and Washington at a cost of more than $2 billion to the FDIC.

NEW YORK (CNNMoney.com) — Regulators closed one large bank in Illinois on Friday in one of the biggest collapses of the year, while two other smaller failures pushed the 2009 total to 92.

Customers of the banks, however, are protected. The Federal Deposit Insurance Corp, which has insured bank deposits since the Great Depression, covers customer accounts up to $250,000.

In Illinois, 16 banks have failed so far this year, including Chicago-based Corus Bank, which was closed by the Office of the Comptroller of the Currency on Friday.

Read more3 more down: 2009 Bank failure tally hits 92

Meredith Whitney: There Will Be More Than 300 Bank Failures

meredith-whitney
Meredith Whitney, the analyst who predicted that Citigroup Inc. would cut its dividend last year, said the number of U.S. bank failures will quadruple as lenders struggle with bad loans. (Bloomberg)

Aug. 21 (Bloomberg) — Meredith Whitney, the analyst who predicted that Citigroup Inc. would cut its dividend last year, said the number of U.S. bank failures will quadruple as lenders struggle with bad loans.

“There will be over 300 bank closures,” Whitney said in an interview with Bloomberg Television from Jackson Hole, Wyoming. “The small-business owner on Main Street continues to see liquidity come away.”

Read moreMeredith Whitney: There Will Be More Than 300 Bank Failures

Regulators seize North Carolina, Georgia and Kansas Bank; So far 40 bank failures this year

June 21 (Bloomberg) — Banks in North Carolina, Georgia and Kansas with combined assets of $1.5 billion were seized by regulators last week, costing the U.S. insurance fund $363 million and pushing this year’s tally of failures to 40.

Southern Community Bank of Fayetteville, Georgia, and 111- year-old Cooperative Bank in Wilmington, North Carolina, were closed June 19 by state officials, and the Office of the Comptroller of the Currency shut First National Bank of Anthony, Kansas. The Federal Deposit Insurance Corp. was named receiver.

Southern Community’s $307 million in deposits were bought by United Community Bank of Blairsville, Georgia, and most of Cooperative’s $774 million in deposits went to First Bank in Troy, North Carolina, the FDIC said. Bank of Kansas in South Hutchinson acquired First Bank’s $142.5 million in deposits. The acquiring banks are assuming a combined $1.47 billion in assets, mostly loans, and signed agreements with the FDIC to share more than 80 percent losses with the government.

Read moreRegulators seize North Carolina, Georgia and Kansas Bank; So far 40 bank failures this year

Analyst: One Third Of Banks Could Collapse In 2009

Silva tells CNBC up to a thousand face failure or forced mergers

Financial analyst Ralph Silva of TowerGroup told CNBC this morning that he expects no less than one third of banks to fail in 2009 and that anything up to a thousand could collapse if they don’t merge.

Silva said that only five or six global banks have enough funds to survive comfortably throughout 2009.

“The rest of the banks, and that means a thousand other banks, don’t have enough money to get themselves through 2009,” added Silva.

“In 2009 we’re gonna see one third of the banks in the G8 countries disappear, either being merged, forced or not forced, or completely disappearing,” said Silva.

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Two More Banks Bite the Dust

NEW YORK (AP) – Regulators on Friday closed Haven Trust Bank in Georgia and Sanderson State Bank in Texas, bringing to 25 the number of U.S. bank failures this year.

The Federal Deposit Insurance Corp. was appointed receiver of Haven Trust Bank, based in Duluth, Ga., and Sanderson State, with one office in Sanderson, Texas.

Haven Trust had assets of $572 million and deposits of $515 million as of Dec. 8. Sanderson State had assets of $37 million and deposits of $27.9 million as of Dec. 3.

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First Georgia Community Bank Closed, Boosting 2008 Toll to 23

Dec. 6 (Bloomberg) — First Georgia Community Bank of Jackson, with four offices southeast of Atlanta, was closed by regulators, becoming the 23rd U.S. bank failure this year amid losses tied to record mortgage delinquencies and foreclosures.

First Georgia, with $237.5 million in assets and $197.4 million in deposits, was shut by the Georgia Department of Banking and Finance yesterday and the Federal Deposit Insurance Corp. was named receiver. United Bank of Zebulon, Georgia, will assume First Georgia’s deposits and open the failed bank’s offices today as United branches, the FDIC said.

“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,” the FDIC said in an e-mailed statement.

Regulators have closed the most banks in 15 years, with the collapses of Washington Mutual Inc. and IndyMac Bancorp Inc. among the biggest in history. November was the busiest month in more than a decade, with five institutions shut, matching the pace in July 1994, according to the FDIC.

Read moreFirst Georgia Community Bank Closed, Boosting 2008 Toll to 23

Downey Seized, Sold to U.S. Bancorp as Mortgage Fallout Spreads

Nov. 22 (Bloomberg) — Seizure and sale of Downey Financial Corp. and two smaller lenders may cost the FDIC more than $2 billion as foreclosures rise and home prices extend declines in the worst housing slump since the Great Depression.

U.S. Bancorp acquired Downey and smaller PFF Bank & Trust, California thrifts crippled by bad mortgages, yesterday in a deal brokered by the Federal Deposit Insurance Corp. Community Bank of Loganville, Georgia, was also closed and its $611.4 million of deposits taken over by Bank of Essex in Tappahannock, Virginia.

Regulators this year have closed the most banks since 1993 as mortgage defaults and tightening credit froze markets. The collapse of IndyMac Bancorp Inc. was among the biggest in history, costing the FDIC $8.9 billion. The agency expects Downey’s demise to deplete its Deposit Insurance Fund by $1.4 billion, with PFF costing $700 million and Community $240 million.

Read moreDowney Seized, Sold to U.S. Bancorp as Mortgage Fallout Spreads