Exploring Hydrocarbon Depletion
NEW! Members Only Forums!
Access more articles, news & discussion by becoming a PeakOil.com Member.
... The panic over the bank began last week, after Afghanistan’s Central Bank ousted Kabul Bank’s chairman and the chief executive officer on revelations that the bank had lent hundreds of millions of dollars to allies of President Hamid Karzai and poured money into risky real estate investments in Dubai. Investment losses paired with a possible run on the bank could bring down the bank, which is a major player in the nascent, American-fostered financial system and which administers payments to government workers and some security forces.
SAN FRANCISCO (MarketWatch) -- Horizon Bank of Bradenton, Fla., became the 119th U.S. bank failure of 2010, according to the Federal Deposit Insurance Corp. on Friday. Bank of the Ozarks will assume Horizon's $164.6 million in deposits and purchase its $187.8 million in assets. The bank failure marks the 23rd in Florida this year. The cost to the Deposit Insurance Fund is $58.9 million, FDIC said
Afghanistan’s central bank yesterday seized control of the troubled Kabul Bank over concerns about possible financial irregularities, including the purchase of more than US$150 million (Dh550.9m) of Dubai property.
The central bank governor also announced that Kabul Bank’s top two directors and shareholders were under investigation.
The crisis has flagged concerns about the handling of funds from Western donor countries, channeled through a nascent commercial banking sector that the United States has encouraged Afghanistan to build and which is tied closely to Karzai's family and members of his inner circle.
A widespread perception among Afghans that Karzai's government is corrupt will be a major issue at Saturday's parliamentary election, which the Taliban has vowed to disrupt.
Georgia’s Community & Southern Bank picked up $800 million in deposits as it acquired three of the six U.S. banks that collapsed this week, bringing the failure count this year to 125.
Banks in Georgia, New Jersey, Ohio and Wisconsin were closed by regulators, according to statements on the website of the Federal Deposit Insurance Corp., which was named receiver. This week’s failures cost the agency’s deposit-insurance fund $347.6 million.
“Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage,” the FDIC said in each of the statements.
Banks are failing at a faster pace than last year, which saw the most failures since 1992, as real estate values remain depressed and economic recovery stays sluggish. Regulators closed 140 banks last year. The FDIC’s list of “problem” banks climbed to 829 lenders with $403 billion in assets at the end of the second quarter, a 7 percent increase from the 775 on the list in the first quarter, the FDIC said last month.
September 24, 2010 - Florida has experienced more banking failures than any other state in the nation. Today’s failure of Haven Trust Bank Florida becomes the nation’s 126th banking failure and the twenty-fourth in Florida. Almost 20% of the nation’s total banking failures have now occurred in Florida. The only two other states with more than ten banking failures are Illinois with 15 and Georgia with 14 (see Banking Failures Spread to 28 States).
Haven Trust Bank Florida, operating under a consent order with State and Federal regulators since early 2010, was closed by the Florida Office of Financial Regulation which appointed the FDIC as receiver. The consent order had required Haven Trust to raise critically needed capital and reduce nonperforming loans. In March 2010, President and CEO Matt Greene stated that “Our team is well on its way to meeting all requirements of the order and returning the bank to good standing”. Similar to many other small undercapitalized banks, Haven Trust was unable to meet the requirements of the FDIC consent order.
The FDIC, as receiver, entered into a purchase and assumption agreement with First Southern Bank, Boca Raton Florida to assume all deposits and purchase essentially all of the assets of failed Haven Trust Bank.
Although Haven Trust Bank Florida operated as a separate institution under a different banking charter, the bank had close ties to Haven Trust Bank, Duluth, Georgia, that was closed by regulators on December 12, 2008. Haven Trust Bank Florida, was founded in 2006 and five of its 11 founders also held management or board positions at Haven Trust Bank, Duluth, Georgia.
Both banks targeted primarily Indian and other Asian small business owners and both banks had almost 30% of their total loans in risky acquisition, development and construction loans. Both banks also fueled asset growth through aggressive soliciting of brokered deposits at high rates of interest.
jdmartin wrote:Thanks for the updates!
WASHINGTON -- Regulators on Friday shut down a total of six banks in Florida, Georgia, Illinois and Kansas, lifting to 138 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 will be called Hillcrest Bank N.A.
The agency and Hillcrest Bank N.A. are sharing losses on $1.1 billion of the failed bank's assets. Its failure is expected to cost the FDIC $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 ( FORV.PK - news - people ) of Barnesville in Barnesville, Ga., with $131.4 million in assets; Gordon Bank of Gordon, Ga., with $29.4 million in assets; and First Suburban National Bank in Maywood, Ill., with $148.7 million in assets.
Ameris Bank, based in Moultrie, Ga., agreed to assume the assets and deposits of First Bank of Jacksonville. Bay Cities Bank, based in Tampa, is buying the assets and deposits of Progress Bank.
jdmartin wrote:That one in Kansas was a big ass bank. And they couldn't even find a buyer for the one in Arizona. Crazy.
First Vietnamese American Bank, Westminster, CA with approximately $48.0 million in total assets and $47.0 million in total deposits was closed. Grandpoint Bank, Los Angeles, CA has agreed to assume all deposits excluding certain brokered deposits.
Pierce Commercial Bank, Tacoma, WA with approximately $221.1 million in total assets and $193.5 million in total deposits was closed. Heritage Bank, Olympia, WA has agreed to assume all deposits.
Western Commercial Bank, Woodland Hills, CA with approximately $98.6 million in total assets and $101.1 million in total deposits was closed. First California Bank, Westlake Village, CA has agreed to assume all deposits.
K Bank, Randallstown, MD with approximately $538.3 million in total assets and $500.1 million in total deposits was closed. Manufacturers and Traders Trust Company, Buffalo, NY has agreed to assume all deposits excluding certain brokered deposits.
First Posted: 11- 6-10 02:11 PM | Updated: 11- 6-10 02:11 PM
WASHINGTON -- Regulators shut down four more banks Friday, bringing the 2010 total to 143, topping the 140 shuttered last year and the most in a year since the savings-and-loan crisis two decades ago. ... Banks are falling as soured loans have mounted and the economy has sputtered. The wave of closings points to the lingering power of the recession more than a year after its official end.
Florida, Georgia, Illinois and California have each seen bank failures in the double digits this year. Some communities in those states are still reeling from the financial meltdown that brought an avalanche of bad loans, especially for commercial real estate.
The closures have compounded the problems in areas already straining under high unemployment, foreclosed homes and vacant malls and office buildings.
The pace of failures has accelerated as banks' losses on loans for commercial property and development have mounted. Many companies have shut down in the recession, vacating shopping malls and office buildings financed by the loans. That has brought delinquent loan payments and defaults by commercial developers.
The 2009 total of bank failures had been the highest annual toll since 1992, at the height of the savings and loan crisis. More than 1,000 banks went under in the savings-and-loan crisis of 1987-1992.
Twenty-five banks failed in 2008, the year the financial crisis struck with force; only three succumbed in 2007.
The growing bank failures have sapped billions of dollars out of the FDIC's deposit insurance fund. It fell into the red last year, and its deficit stood at $15.2 billion as of June 30.
The FDIC expects the cost of resolving failed banks to total around $52 billion from 2010 through 2014.
Depositors' money -- insured up to $250,000 per account -- is not at risk, with the FDIC backed by the government. That insurance cap was made permanent in the financial overhaul law enacted in July.
The Federal Deposit Insurance Corporation reported that Gulf State Community Bank, failed early Friday evening bringing the total failures for 2010 to 148, nearly 20 more banks failures than last year at this point.
Florida Surpasses All Other States in Failures
The total number of bank failures for Florida is now up to 28 making the most failures. The Gulf State Community Bank will now be operating under the control of Centennial Bank. Centennial Bank agreed to purchase nearly all of the of Gulf State’s assets, approximately $112.1 million in total assets and $112.2 in total deposits.
Florida has had the most difficult time with these failures. The next closest state is Illinois with 12 fewer failures at 16.
Users browsing this forum: No registered users and 5 guests