Four more bank failures 01-29-10

Weiss

Billion-dollar or near billion dollar organizations:

The Federal Deposit Insurance Corp (FDIC) said First Regional Bank in Los Angeles, Florida Community Bank in Immokalee, First National Bank of Georgia in Carrollton and Community Bank and Trust of Cornelia, Georgia had failed -- pushing the tally to 14 of bank's that have failed this year.

http://www.reuters.com/article/idUSTRE60T01F20100130

OnlyGoldIsMoney

At an average of 3 failures each Friday we're looking at perhaps 160 for the year.

Weiss

The scary thing is that these aren't single-branch small town banks. If I'm reading the recent failures correctly, these are $billion failures.

Justacommeman

The pace is going to pick up. I'm guessing you will have 250 on the low side and 400 on the high side in 2010. If they were going by old rules( pre 2007) they would have to close almost all the banks but three.....hey, but remember all is well. MJ

gsa1fan

They were just saying on the Atlanta news that 33 banks in Georgia have failed since 2009.

Weiss

Whoa. I stand corrected. Five banks failed today.

Justacommeman

It's almost comical that they only release the bank closings on Friday at 4pm after the markets close. By Monday 8am all is forgotten. Look away from the curtain.......MJ

dino2008

Just read in the paper this A.M... Stillwater bank here in Oklahoma is in trouble...kinda makes you wonder if those old people who used to stuff thier mattresses and walls in thier homes with cash were on to something..

tincup

I suspect many, many more are in fact now bankrupt. But the FDIC is controlling the number to allow 3-5 failures each week to be officially announced (and as mentioned, on Fridays after the market closed) to avoid concern and panic out in the public. And it appears to be working... no-one is paying any attention any more. It is old and routine....

Remember the publicity and concern when the first bank failure was imminent around 2 years ago (Wamu I think). Great concern, and big news, etc. But now, 3 to 5 bank failures per week gets no reaction, except a yawn or two and everyone goes back to watching American Idol. We are being told that the recession is over, everything is much, much better. But in the meantime, the system is still melting down in the background.

Weiss

Uhhh, now it's SIX that failed Friday

Six Banks Fail, 2010 Tally at 15

WASHINGTON (TheStreet) -- Six community banks failed Friday, bringing the 2010 tally of failed U.S. banking institutions to 15.
Friday's failures are expected to cost the Federal Deposit Insurance Corp.'s insurance fund a total of $1.9 billion.



http://www.thestreet.com/story/10670679/1/six-banks-fail-2010-tally-at-15.html?cm_ven=GOOGLEN

OnlyGoldIsMoney

Can these failures be characterized as primarily due to non performing residential or commercial loans? Perhaps there is no common thread.

In October a friend who happens to be a CPA opined that many of his commercial accounts were just barely making their debt service payments on vacant commercial real estate.

shorecoll

There are 530 on the likely to fail list. FDIC moves slowly because a) they don't have the staff and b) if the economy comes back, some won't fail. They close on weekends to process the accounts. Most banks are in trouble because of bad underwriting on (sort of) commercial loans. Example: well known local businessman has real estate business, auto business, investments in 5 other businesses and a $1MM home loan. They may have checked him out on one loan, but small bank systems never seemed to realize it was all one guy. Now figure there's a million of these guys spread around the country and you have lots of bank failures. This is also the same guy who's complaining he can't get a small business loan as banks start to figure out these leverage deals.

I left out the part where this same guy is a backer for that failed real estate development you see in every town.

Justacommeman

The FDIC actually tired to hire a bunch of folks for this potential "upcoming event" as early as fall 2007. Believe it of not it's hard finding qualified people that are still interested from the last go round (S & L crisis). I firmly believe that are banks are unsafe and that the FDIC is well under funded and this is a controled melt down. But all is well from what I hear on the news so I'm probably wrong, we can all rest easy..............MJ

Kip

<< <i>Billion-dollar or near billion dollar organizations:

The Federal Deposit Insurance Corp (FDIC) said First Regional Bank in Los Angeles, Florida Community Bank in Immokalee, First National Bank of Georgia in Carrollton and Community Bank and Trust of Cornelia, Georgia had failed -- pushing the tally to 14 of bank's that have failed this year.

http://www.reuters.com/article/idUSTRE60T01F20100130 >>



Heres another great site for banks in trouble

Text

renman95

<< <i>I suspect many, many more are in fact now bankrupt. But the FDIC is controlling the number to allow 3-5 failures each week to be officially announced (and as mentioned, on Fridays after the market closed) to avoid concern and panic out in the public. And it appears to be working... no-one is paying any attention any more. It is old and routine....

Remember the publicity and concern when the first bank failure was imminent around 2 years ago (Wamu I think). Great concern, and big news, etc. But now, 3 to 5 bank failures per week gets no reaction, except a yawn or two and everyone goes back to watching American Idol. We are being told that the recession is over, everything is much, much better. But in the meantime, the system is still melting down in the background. >>




Tincup, bingo. I like your assessment. This is controlled kaos.

Weiss

<< <i>There are 530 on the likely to fail list. FDIC moves slowly because a) they don't have the staff and b) if the economy comes back, some won't fail. They close on weekends to process the accounts. Most banks are in trouble because of bad underwriting on (sort of) commercial loans. Example: well known local businessman has real estate business, auto business, investments in 5 other businesses and a $1MM home loan. They may have checked him out on one loan, but small bank systems never seemed to realize it was all one guy. Now figure there's a million of these guys spread around the country and you have lots of bank failures. This is also the same guy who's complaining he can't get a small business loan as banks start to figure out these leverage deals.

I left out the part where this same guy is a backer for that failed real estate development you see in every town. >>

KUCH

<< <i>

<< <i>Billion-dollar or near billion dollar organizations:

The Federal Deposit Insurance Corp (FDIC) said First Regional Bank in Los Angeles, Florida Community Bank in Immokalee, First National Bank of Georgia in Carrollton and Community Bank and Trust of Cornelia, Georgia had failed -- pushing the tally to 14 of bank's that have failed this year.

http://www.reuters.com/article/idUSTRE60T01F20100130 >>


Heres another great site for banks in trouble

Text >>



Went to the link text posted here. List of Banks in trouble. QUESTION - Check out banks from 117 thru 120, if you had $1M in CD's with one of these banks, what would you do??????? I'm not a banker, really don't know what info about each bank denotes. Appreciate quick reponse.

KUCH

HOW WOULD YOU GET 1M OUT OF A BANK ON THIS LIST MONDAY MORNING?

CaptHenway

<< <i>HOW WOULD YOU GET 1M OUT OF A BANK ON THIS LIST MONDAY MORNING? >>



Very carefully...........

tetradrachm

Hmm, maybe go back in time and make sure you keep your account balance under the FDIC insured limit of $250,000? Then even if your bank fails, enough money will be printed to cover your deposit.


You may also be able to structure $1 million in such a way that you have one quarter in your account, one in your wife's account, one in a joint account, and then move the last quarter to another bank or in a different type of account (IRA, Revocable Trust, etc), so that they are all insured.

The FDIC has a chart here:
FDIC: Your Insured Deposits

KUCH

I well check out the FDIC insured accounts. Also, does anyone have the OFFICAL list of bank failures-banks in trouble???????? An eldery family member has 1M in a bank listed on the unoffical site around the 118 number.

KUCH

<< <i>

<< <i>HOW WOULD YOU GET 1M OUT OF A BANK ON THIS LIST MONDAY MORNING? >>



Very carefully...........


>>



If you please and if you know, how would this be done "very carefully"? Leave $250,00 in bank, wire $250,000 X 3 to 3 other "solvent" banks?

tincup

"You may also be able to structure $1 million in such a way that you have one quarter in your account, one in your wife's account, one in a joint account, and then move the last quarter to another bank or in a different type of account (IRA, Revocable Trust, etc), so that they are all insured."

I would be careful of making use of the joint account. Because the limit applies to ALL accounts in a persons name in the same bank. In other words, a person would not want to open multiple accounts in their name and have the limit in each account. The maximum that would be covered by FDIC would be the 250,000 in total. Not sure how they would handle a joint account. Perhaps half would not be covered.

When you have accounts in several different banks, then each account is insured to the 250,000 limit.

If the bank of concern is around 118 on the list, official announcement of failure may or may not be imminent. Having 750,000 at risk would be a great concern to me. I would probably be looking at cashing in some of the cd's even if a penalty was involved and moving them to another bank.

One thing you might try.... talk to another bank and see if a transfer can be worked out. That way, it would be much simpler to have them handle the 250,000 amount instead of you going to your bank, trying to get a 250,000 check on the spot, and then trying to find another bank and deposit, etc.

Bear in mind I am not a financial advisor, and neither are the majority on this forum, so certainly do your own due diligence. Which, BTW, may be the best thing to do... Monday morning go to a financial advisor you can trust.

KUCH

<< <i>"You may also be able to structure $1 million in such a way that you have one quarter in your account, one in your wife's account, one in a joint account, and then move the last quarter to another bank or in a different type of account (IRA, Revocable Trust, etc), so that they are all insured."

I would be careful of making use of the joint account. Because the limit applies to ALL accounts in a persons name in the same bank. In other words, a person would not want to open multiple accounts in their name and have the limit in each account. The maximum that would be covered by FDIC would be the 250,000 in total. Not sure how they would handle a joint account. Perhaps half would not be covered.

When you have accounts in several different banks, then each account is insured to the 250,000 limit.

If the bank of concern is around 118 on the list, official announcement of failure may or may not be imminent. Having 750,000 at risk would be a great concern to me. I would probably be looking at cashing in some of the cd's even if a penalty was involved and moving them to another bank.

One thing you might try.... talk to another bank and see if a transfer can be worked out. That way, it would be much simpler to have them handle the 250,000 amount instead of you going to your bank, trying to get a 250,000 check on the spot, and then trying to find another bank and deposit, etc.

Tincup, (great golf movie by the way) Appreciate the info. Was thinking the same thing....... have some amounts wired to a different bank tomorrow!!!! I've been searching, FDIC does NOT have an offical site showing troubled banks. Makes sense, as everything is being kept under the radar. (Going to check a few more unoffical sites and see where this bank stands there) As bank closures increase, more monies will go into land, equities and PM's. This small correction in gold and silver is temporary.

Bear in mind I am not a financial advisor, and neither are the majority on this forum, so certainly do your own due diligence. Which, BTW, may be the best thing to do... Monday morning go to a financial advisor you can trust. >>

CaptHenway

The FDIC is opening a "temporary Midwest satellite office" in the Chicago suburbs that will employ 500. See the third item in this column from the Chicago Sun-Times business page:
.
link

Weiss

<< <i>The FDIC is opening a "temporary Midwest satellite office" in the Chicago suburbs that will employ 500. See the third item in this column from the Chicago Sun-Times business page:
.
link

>>



Crap. That doesn't sound good.

CaptHenway

Well, at least the FDIC is hiring!!!