FDIC: Press Releases - 7 Banks Were Closed LAST NIGHT!

[peaceandlove]

From FEVER I AM blogspot: http://feveriam.blogspot.com/2009/07/fdic-press-releases-7-banks-were-closed.html

FRIDAY, 3 JULY 2009

FDIC: Press Releases - 7 Banks Were Closed LAST NIGHT!

For those of you out there who rarely have the time, here's the latest on the economic collapse in the US.

7, yes seven, banks were closed yesterday... 6 of them in Illinois, bringing the total this year to 12 in Illinois.

Guess those green shoots were just too much for them?

You can read the press releases for these closures on the FDIC website -
FDIC: Press Releases http://www.fdic.gov/news/news/press/2009/index.html

The largest? Founders Bank and Trust, with assets of $962.5 Million, and deposits of $848.9 Million.

Texas lost one, the first one this year.

"The six failed Illinois banks are all controlled by one family and followed a similar business model that created concentrated exposure in each institution. The failure of these banks resulted primarily from losses related to the banks' investment in collateralized debt obligations and other loan losses."

Please note that last sentence from the Press release - CDOs were the cause of the failures...

Pity we don't know what these CDOs were built from, or what the 'other loan losses' actually were. Expect to this steam roll over the summer.

Peace and Love
POSTED BY MIKE AT 14:33




US: Five more banks seized by the governmet, raising failures this year to 45.
Bloomberg 2009 June 27

SOURCE: G. Edward Griffin's site: http://www.realityzone.com/currentperiod.html

Five Banks Are Seized, Raising U.S. Failures This Year to 45

By Margaret Chadbourn

June 27 (Bloomberg) -- Five U.S. banks with total assets of about $1.04 billion were seized by regulators, pushing this year’s tally of failures to 45 as a recession drives up unemployment and home foreclosures.

Community Bank of West Georgia, in Villa Rica, Georgia; Neighborhood Community Bank of Newnan, Georgia; Horizon Bank of Pine City, Minnesota; MetroPacific Bank of Irvine, California; and Mirae Bank of Los Angeles were closed yesterday by state regulators, according to statements from the Federal Deposit Insurance Corp. The FDIC was named receiver of the four banks.

Wilshire Bancorp’s Wilshire State Bank will take over all of Mirae’s $362 million in deposits, and will purchase $449 million of assets, the FDIC said in a statement.

Continues: http://www.bloomberg.com/apps/news?pid=20601087&sid=aCbHA.m7rikc

[peaceandlove]

"BOOM!" (More Obfuscation)

Wednesday, July 1. 2009
Posted by Karl Denninger

"Someone" paid 7% for overnight money on the Fed Trading system last night (that "someone" was a bank, by the way.) http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm

This will be claimed to be "ordinary" end of quarter distortions for closing the books.

Don't believe it for a second.

Let's put this in plain language: The discount window is open for any bank that has good collateral at less than 1/10th of that interest rate.

Therefore there is absolutely no reason for any institution to go into the Fed Funds market for overnight money at 7% unless they have no good collateral to post against it and thus cannot go to the window.

So who is it? No idea. And while the amount borrowed overnight at that rate may be tiny, that's not the point - the point is that the last time we saw anything that dramatic was just before it all went "boom" last year.

Yes, I'm sure that end-of-quarter had something to do with it. In fact, I'd be stunned if it did not.

However, as I noted, there's no reason for anyone to pay that if they have good collateral to post at the discount window, given that you can do so for 1/10th or less the price.

Keep your nose to the ground and your eyes open.

Someone (or more than one someone) is in trouble.

SOURCE: http://market-ticker.denninger.net/archives/2009/07/01.html

[BROOK]

From FEVER I AM blogspot: http://feveriam.blogspot.com/2009/07/fdic-press-releases-7-banks-were-closed.html

FRIDAY, 3 JULY 2009

FDIC: Press Releases - 7 Banks Were Closed LAST NIGHT!





US: Five more banks seized by the governmet, raising failures this year to 45.
Bloomberg 2009 June 27

SOURCE: G. Edward Griffin's site: http://www.realityzone.com/currentperiod.html

Five Banks Are Seized, Raising U.S. Failures This Year to 45

By Margaret Chadbourn

June 27 (Bloomberg) -- Five U.S. banks with total assets of about $1.04 billion were seized by regulators, pushing this year’s tally of failures to 45 as a recession drives up unemployment and home foreclosures.

Community Bank of West Georgia, in Villa Rica, Georgia; Neighborhood Community Bank of Newnan, Georgia; Horizon Bank of Pine City, Minnesota; MetroPacific Bank of Irvine, California; and Mirae Bank of Los Angeles were closed yesterday by state regulators, according to statements from the Federal Deposit Insurance Corp. The FDIC was named receiver of the four banks.

Wilshire Bancorp’s Wilshire State Bank will take over all of Mirae’s $362 million in deposits, and will purchase $449 million of assets, the FDIC said in a statement.

Continues: http://www.bloomberg.com/apps/news?pid=20601087&sid=aCbHA.m7rikc.


OMG...I was dealing with Wilshire bank corp this last week...and I was curious about them...I needed some information on a foreclosure they did on one of my customers. They were not very friendly or helpful for that matter...just a coincidence ...but I have never heard of them until last wednesday..and now here it is again :shocked:

[peaceandlove]

Economy In Turmoil Cant Be Fixed With Farcical Regulation

Bob Chapman

Latest Issue: July 4th, 2009:

Bad news releases for the economy timed to holiday weekend, Over a billion in assets seized from 5 US banks, loss sharing arrangements between survivors, 400 banks to go under this year, Fed proposes system for consumer protection against predatory lending practices - a farcical idea since the banks own the Fed, Ron Paul Fed Transparency act now has 244 sponsors, No need for regulation if the Fed, Treasury and Wall Street werent manipulating the markets, Consumer confidence slides,

The Friday night, June 27th FDIC Financial Follies were presented again at 9:00 pm EST. That is so the public will not hear about the failures.

Five U.S. banks with total assets of about $1.04 billion were seized by regulators, pushing this year’s tally of failures to 45 as a recession drives up unemployment and home foreclosures.

Community Bank of West Georgia, in Villa Rica, Georgia; Neighborhood Community Bank of Newnan, Georgia; Horizon Bank of Pine City, Minnesota; MetroPacific Bank of Irvine, California; and Mirae Bank of Los Angeles were closed yesterday by state regulators, according to statements from the Federal Deposit Insurance Corp. The FDIC was named receiver of the four banks.

Wilshire Bancorp’s Wilshire State Bank will take over all of Mirae’s $362 million in deposits, and will purchase $449 million of assets, the FDIC said in a statement.

Sunwest Bank of Tustin, California, acquired most of MetroPacific’s $73 million in deposits and $80 million in assets, the FDIC said. Stearns Bank of St. Cloud, Minnesota, bought Horizon Bank’s $69.4 million of deposits. Stearns will purchase $84.4 million of Horizon’s assets, the FDIC said.

The FDIC didn’t find a buyer for Community Bank of West Georgia, and said it will mail checks to reimburse insured depositors. The bank has deposits of $182.5 million. Charter Financial Corp.’s CharterBank will assume Neighborhood Community Bank’s $191.3 million of deposits and purchased some assets in a loss-share agreement with the FDIC, according to the agency.

“The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector,” the FDIC said. “The agreement also is expected to minimize disruptions for loan customers.”

Regulators have seized the most U.S. banks this year since 1993. The U.S. economy has shed about 6 million jobs since the recession began in December 2007. Foreclosure filings surpassed 300,000 for the third straight month in May, according to RealtyTrac Inc.

Continues: http://www.theinternationalforecaster.com/International_Forecaster_Weekly/Economy_In_Turmoil_Cant_Be_Fixed_With_Farcical_Reg ulation