FDIC Watch - Keeping an eye on the FDIC and the banks they regulate

tag:blogger.com,1999:blog-49215518325092378202011-11-27T16:32:44.474-08:00FDIC Watch - Keeping an eye on the FDIC and the banks they regulateResources for understanding the risks of your deposits in the US banking system.Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.comBlogger251100tag:blogger.com,1999:blog-4921551832509237820.post-45745824108077815102008-08-01T15:17:00.000-07:002008-08-01T15:19:16.950-07:00FAILED BANK: First Priority Bank, Bradenton, FL

FDIC has taken over First Priority Bank in Bradenton, FLFDIC Information for First Priority Bank, Bradenton, FL On August 1, 2008, First Priority Bank, Bradenton, Florida was closed by the Florida Office of Financial Regulation. Subsequently the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed. All

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-43951736822520240732008-07-31T08:43:00.000-07:002008-07-31T08:48:21.670-07:00Capital rules no longer apply to banks taken over by the FDIC

Now the FDIC can keep a failed bank open without the pressure of selling it off. This is possible for preparation of a large bank failing that could not be sold in a timely manner to the nationalization of some of the US banking system.FDIC Request The exemption in the new law, which was requested by the FDIC without objection by the Fed's Board of Governors, was aimed at making clear that once

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-72378652848773573402008-07-31T08:36:00.000-07:002008-07-31T08:42:50.334-07:00Bair Says IndyMac `Unattractive' to a Potential Buyer

FDIC Chairman Sheila Bair said this about IndyMac in a interview with Bloomberg"There are a number of things about this institution that, to be honest with you, make it unattractive to a potential purchaser," Bair said."What we're trying to do now is do what we can to strengthen it, strengthen the asset quality, strengthen the servicing portfolio, so we can sell it off and get a better value,

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-73568154476358692652008-07-30T09:51:00.000-07:002008-07-30T09:54:58.582-07:00Franklin Bank Corp. Receives Non-Compliance Notification From NASDAQ

MarketWatch reports Franklin Bank Corp. Receives Non-Compliance Notification From NASDAQ.Franklin Bank Corp. received a letter from the NASDAQ Stock Market ("Nasdaq") indicating that, for the prior 30 consecutive business days, Franklin's common stock had not maintained the minimum bid price of $1.00 per share required for continued listing, as set forth in Nasdaq Marketplace Rule 4450 (the "

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-61583843745500079672008-07-29T16:04:00.000-07:002008-07-29T18:57:06.890-07:00White House estimates FDIC to pay out $12 billion through 2010

White House budget estimates (pg. 17) show the Federal Deposit Insurance Corp could pay almost $12 billion to cover insured bank deposits through fiscal 2010 if more banks fail.Deposit insurance.—Over the next five years, net outlays for the Federal Deposit Insurance Corporation are expected to increase by $5 billion. Net outlays increase by $4 billion in 2008 and $12 billion in 2009 due to

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-20422973849289747302008-07-29T08:34:00.000-07:002008-07-29T08:45:02.585-07:00Insure upto $50 million with the FDIC using CDARS

CDARS is another way to circumvent the FDIC 100k insurance limit with one account and using a network of regional banks. From the CDARS website:CDARS® is the Certificate of Deposit Account Registry Service®. And it's the most convenient way to enjoy full FDIC insurance on deposits of up to $50 million. With CDARS, you sign one agreement with a participating local bank or other financial

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-35489474845292677472008-07-28T14:05:00.000-07:002008-07-28T14:10:22.036-07:00The Bank of the Bluegrass & Trust Co reveals cease and desist order from FDIC

The bank has sent out the following letter to customers todayDear Bank of the Bluegrass & Trust Co. Customer,The foundation of service and trust on which the Bank of the Bluegrass is built grew from a tradition of strong management and adherence to sound banking principles. That foundation has enabled the Bank of the Bluegrass & Trust Co. to continue to provide quality, personal service

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-13519270770725863252008-07-26T11:32:00.000-07:002008-07-26T11:52:35.217-07:00Why the FDIC's problem bank list is not a great indicator of what banks will fail

Once banks are placed on the the FDIC's problem bank list they will often merge or receive capital injections. Capital injections will often come from the banks owners and directors to protect their multi-million dollar investment. In other not so legal actions, banks will sometimes receive forbearance from a member of Congress directing the primary regulator to step back as was seen with the

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-91495765327088272702008-07-26T10:28:00.000-07:002008-07-26T10:33:46.263-07:00Why is the FDIC insuring all deposits and then taking a $862 million charge?

In the latest bank failures of First National Bank of Nevada and First Heritage Bank, the FDIC is insuring all deposits including those over the FDIC limits while taking a $862 million charge. With more bank failures on the way would it have not been a better decision to limit the losses by paying out all insured deposits and uninsured deposits would get what was leftover from the asset sale. Is

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com1tag:blogger.com,1999:blog-4921551832509237820.post-90101716863059795372008-07-26T09:59:00.000-07:002008-07-26T16:02:46.640-07:00Silver State Bancorp Announces Director Resignation

MarketWatch reports Silver State Bank, announced today that Andrew K. McCain submitted his resignation as a director on the Boards of Directors of Silver State Bancorp and Silver State Bank, citing personal reasons.

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-85845543806818690832008-07-26T09:34:00.000-07:002008-07-26T09:35:15.972-07:00Housing Bill gives the FDIC new power

From the Washington PostIndeed, a little-noticed provision in the bill underscores the continuing pessimism about the state of the economy going forward. The provision gives the Federal Deposit Insurance Corporation authority to create so-called bridge institutions for failing savings associations, mirroring a capability that has existed since 1991 for failed banks. The new power will give the

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-18282649469084699062008-07-26T08:18:00.000-07:002008-07-26T08:29:04.831-07:00Failed Banks: First National Bank of Nevada and First Heritage Bank, N.A

The FDIC reports two failed banks this weekendFirst National Bank of Nevada, Reno, Nevada, with approximately $3.4 billion in assets was closed. Mutual of Omaha Bank, Omaha, Nebraska has agreed to assume all deposits (approximately $3.0 billion). On June 30, 2008, First National Bank of Arizona, Scottsdale, Arizona, merged with First National Bank of Nevada and was included in this action. (PR-63

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-63963086187633372152008-07-25T12:36:00.000-07:002008-07-26T09:59:18.279-07:00Bank failure watch list based on stock prices

One of the easiest ways to see the health of a bank is to look at what the markets value the stock at. Here is the under $5 watch list of bank stocks sorted by Market Cap.WM - Washington Mutual, Inc.NCC - National City CorporationETFC - E TRADE Financial CorporationUCBH - UCBH Holdings, Inc. CRBC - Citizens Republic Bancorp, Inc. CORS - Corus Bankshares, Inc. BKUNA - BankUnited Financial

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-18937608874746188032008-07-25T09:39:00.000-07:002008-07-25T10:02:34.152-07:00Who gets the good assets of a failed bank? Ask the FDIC

The FDIC issued a Covered Bond Policy Statement in preparation for banks to raise more capital. Not going into detail, this will allow specific investors (Goldman Saks possibly) to purchase the covered bonds where the backing collateral will actually be worth something. That leaves everyone else (mostly the taxpayer though the Fed) with collateral that is absolute garbage. Nice way for the well

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-34313096035075911752008-07-25T09:11:00.000-07:002008-07-25T09:18:18.160-07:00Broward Bank of Commerce, FDIC issues deposit insurance

Broward Bank of Commerce said it has received conditional approval from the FDIC for deposit insurance. This is good news that new banks are receiving approval in this environment to take the place of badly managed banks being kept alive. The quote on the about us section says it all: The fact that the bank will open with a clean loan portfolio is significant given the current state of the local

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-11818271748739647872008-07-25T08:58:00.000-07:002008-07-25T09:08:41.084-07:00Reuters: Washington Mutual debt protection costs jump

From Reuters:The cost of protecting Washington Mutual's debt for five years rose to $1.85 million on an upfront basis, plus $500,000 in annual premiums, up from about $1.35 million plus $500,000 annually on Thursday, according to a trader.So to insure $10 Million of Washington Mutual's debt over 5 years it will cost roughly $4.35 million. If you think about this another way, the insurer is

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-92121937802567570762008-07-24T19:30:00.000-07:002008-07-24T19:43:03.972-07:00Use Brokered CDs to Insure Large Deposits

A brokered CD is a Certificate of Deposit sold by broker and can offer very competitive market rates while maintining full insurance coverage. Effectivly brokered CDs split up a sum of money over the FDIC limits and spreads it out into smaller insured deposits over many different banks. The rates tend to be very competitive because the financial institution is competing directly with other

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-44273131082821604792008-07-24T19:13:00.000-07:002008-07-24T19:28:29.771-07:00Are your deposits FDIC insured?

For your deposits to be insured they generally need to fall under all three conditionsThe institution is a member of the FDICThe account is a CD, money market, checking, savings, trust or IRA retirement savings account (Note: money market funds, mutual funds, annuities, life insurance policies, stocks or bonds are NOT insured)Under $100,000 per depositor, per insured bank (This is the basic

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-60234007870773235582008-07-24T14:48:00.000-07:002008-07-24T14:51:12.854-07:00FDICs Depositor's Bill of Rights

From the FDIC Press Release: FDIC Chairman Sheila C. Bair Reiterates Promise of Deposit InsuranceFDIC's Depositor's Bill of RightsYou have the right to automatic deposit insurance coverage when you open a deposit account at an FDIC-insured bank, with no additional cost or action on your part.You have the right to separate FDIC insurance coverage for deposits held at different FDIC-insured

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-40097570932827553612008-07-24T14:21:00.000-07:002008-07-24T14:27:40.150-07:00FDIC offers new tool for failed bank depositers: Is My Account Fully Insured?

New tool for depositers of a failed bank to determine the insurance of accounts. IndyMac is the only bank listed for now and offers a good way to check your accounts.Is My Account Fully Insured?This tool allows failed bank customers the ability to verify whether their account is fully insured or they need to contact FDIC. A link to specific contact information will be provided.This service is

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com1tag:blogger.com,1999:blog-4921551832509237820.post-18690083387874428672008-07-24T14:14:00.000-07:002008-07-24T17:30:06.767-07:00FDIC orders Cerberus must provide $3 billion of credit to GMAC

Bloomberg reports: GMAC, Cerberus Pact With FDIC Sets $3 Billion LineGMAC LLC, the auto and housing lender owned by General Motors Corp. and Cerberus Capital Management LP, must provide $3 billion of credit to its banking unit, according to an agreement with federal banking regulators.This is good news as the FDIC is sending a message that bank owners are not going to just be able to walk away

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-52943114644441979872008-07-24T11:55:00.000-07:002008-07-24T12:06:45.438-07:00WaMu unsecured creditors were "pulling funds"

According to BloombergWashington Mutual Inc. tumbled more than 20 percent for a second day as Gimme Credit LLC said unsecured creditors were "pulling funds" from the biggest U.S. savings and loan.From this quote, it seem if depositers are moving money around to get under FDIC limits. "We won't use the phrase 'run on the bank,' but we would be remiss if we did not observe that many creditors have

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-3852580716203741372008-07-24T11:21:00.001-07:002008-07-24T11:36:21.174-07:00Opinion: Why a bank run at IndyMac AFTER the FDIC took control

Bank runs happen before a bank is closed so why did IndyMac have a bank run after the FDIC took controlThere must have been a major breakdown in relaying the appropriate information to the account holders on why the FDIC took the bank over and that all insured deposits are safeReports of ATMs not working even though the FDIC said they were fully funtionalReports that Online access was not working

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-55906667355537566032008-07-24T11:19:00.000-07:002008-07-24T11:46:30.842-07:00Should the FDIC watch blogs or banks?

Maybe the FDIC should do it's job of watching the banks, then they would not have to watch the blogs. Actually most blogs were saying "Don't pull your money out of IndyMac" after the bank closure, something the FDIC should have relayed to the depositers.FDIC learns it ignores bloggers at its perilThe federal agency insuring bank deposits learned that it can't afford to ignore the blogs following

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0tag:blogger.com,1999:blog-4921551832509237820.post-72195577543959206332008-07-24T11:12:00.000-07:002008-07-24T17:16:27.522-07:00The Texas Ratio

Wikipedia - Texas RatioThe Texas ratio is a measure of a bank's credit troubles. Developed by Gerard Cassidy and others at RBC Capital Markets, it is calculated by dividing the value of the lender's non-performing loans by the sum of its tangible equity capital and loan loss reserves.In analyzing Texas banks during the early 1980s recession, Cassidy noted that banks tended to fail when this ratio

Inside Investigatorhttp://www.blogger.com/profile/06761937951926269519noreply@blogger.com0